The Thriving Smart Home Market Expands Marketing Opportunities for Insurers
The pandemic accelerated the adoption and advancement of smart home technologies, offering insurers in the United States and Canada ample opportunities to educate and inform customers on smart home benefits. According to Mintel research, 61% of the US market and 70% of the Canadian market agree that smart home technology makes life more convenient. The market is ripe for insurers to drive increased engagement among homeowners by encouraging smart home product adoption.
Insurers tap into the smart home market with educational marketing and partnerships.
Insurers are leveraging social media platforms with short and sweet social posts to introduce homeowners to the benefits of installing smart appliances such as thermostats and water leak detectors. State Farm deepened its partnership with home security provider ADT with a $1.2 billion equity investment. This significant financial move by State Farm will grant the insurer a 15% ownership stake in ADT, allowing the brand to further its smart home efforts.
Brands position themselves as resources to help customers make informed decisions.
For consumers seeking to renovate their homes, Allstate and American Family provide advice through social media and email to help customers with home advancements and upgrades. Brands such as TD Insurance and Nationwide present themselves as consultants, providing customers with tips on how to manage their homes with smart home technologies.
Home insurers highlight smart home discounts and offers.
Amica and American Family are presenting discount offers for owning smart home products, encouraging the use and adoption of smart home technologies among policyholders. AAA promoted its Smart Home program with benefits such as 24/7 assistance, while Hippo featured loss mitigation benefits of smart home devices to attract customers in its direct marketing campaigns.
What we think
Consumers will continue to spend a copious amount of time at home as more companies are adopting work-from-home policies. The use of smart home technology will increase, with a general belief from users in both countries that smart home products can save time, and provide convenience and comfortability.
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