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Why Insurance Marketers Need to Connect with Smart Home Consumers

How did we survive before Fitbit, Alexa and Nest?

In just a few short years, connected devices and smart home products have moved from pipe dream to mainstream. It’s an incredible opportunity for the property and casualty insurance industry as data from connected devices can have a profound effect on everything from new insurance offerings to improved risk assessment. But only if insurance companies can reach current and future smart device consumers.

An analysis by McKinsey & Company reveals a 31% compound annual growth rate in household penetration, and Resonate has insights on 43.4 million smart device owners in the U.S. today. This includes people who own connected thermostats, lighting, moisture/flood detection devices and home security systems.The implications of connected homes for property and casualty insurance marketers is game-changing. According to Capgemini’s 2018 Insurance Outlook, “early adopters of connected devices in the P&C insurance industry have a compelling value proposition to demonstrate that data from connected devices can be leveraged to grow new business, improve risk assessment and proactively engage with customers in loss mitigation.” In other words, if a policyholder and their insurance company know when the hot water heater is about to fail and fix it before there’s a problem, they both win.

So how does an insurance marketer identify those smart device owners, understand their current insurance situation and what’s important to them, and then reach them with a compelling message that will drive leads to their agent network or online application? Let’s look at consumer insights within the Resonate Platform that reveal the demographics and daily lifestyles of smart device owners. Our insights also reveal their personal values, which help marketers understand the “why” behind their everyday decisions.

At a high level, most smart device owners:

  • Are married, affluent, college-educated men
  • Hold personal values that lean toward creativity, excitement and enjoying life’s pleasures
  • Lead healthy lifestyles based on their exercise and nutrition habits (good life insurance prospects, too!)

Insurance Smart Device platform

Drilling deeper into smart device owners and their relationship with property insurance providers, they’re 42% more likely than overall consumers to switch insurance providers in the next 3-12 months. The current top three property insurance providers for smart home device owners are Liberty Mutual, Allstate and State Farm. Liberty Mutual policyholders are 53% more likely to switch providers in the next three months. As a Liberty Mutual marketer, what could you do next?

  1. Protect Your Base: Drilling deeper into Resonate data will reveal the reasons why smart device owners who are current Liberty Mutual customers are thinking about switching insurance providers. Targeting this precise segment with relevant messaging on discounts, rewards and other incentives will help keep them in the fold.
  2. Poach The Competition: Delivering a compelling message to your competitors’ policy switchers tailored to their motivations and purchase drivers can help you efficiently convert this high-value audience.
  3. Find More Like Your Best Customers: Leveraging Resonate’s built-in, look-alike targeting helps you identify, target, message and measure how well you’re reaching people who share the same attributes as your current loyal smart home customers.

These are just a few of the hundreds of traits that Resonate captures for the financial services and insurance industry, refreshed daily. Learn about the deep consumer insights we reveal for other growing consumer segments in our just released State of the Consumer Report, Q4 2018.

Ready to get started? Reach out for a demo.