More Than 80 Percent of Insurance Carriers Believe Leveraging Smart Home and IoT Technology Will Attract New Customers and Improve Customer Relationships

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NTT DATA study finds a carrier-consumer perception gap; Market
unknowns and pricing barriers may stand in the way of Smart Home adoption

PLANO, Texas–(BUSINESS WIRE)–According to research findings released today by NTT
DATA
, a top 10 global business and IT services provider, 83 percent
of U.S. homeowners insurance carriers believe Smart Home and Internet of
Things (IoT) technology will attract new property and casualty
customers. However, the complete report, “IoT
Disruption and Opportunity in the U.S. Insurance Industry
,” found
that more than two-thirds (68 percent) believe that the inability to
gain access to data from Smart Home devices will remain a major hurdle
to finalizing carrier programs nationwide.

“While enthusiasm for and investment in the Smart Home ecosystem is high
among carriers, major challenges still exist in its evolution,” said
Normand Lepine, Senior Practice Lead, Insurance Data and Analytics for
NTT DATA. “If carriers are to realize the anticipated benefits of Smart
Home technology, they must first lock down the necessary business
capabilities for adoption including data analytics and data security,
and find partners with proven IoT capabilities to help them prepare to
deliver innovative services and products to their homeowner policy
holders.”

Key Study Findings

  • Carriers must confront the perception gap that exists between
    themselves and consumers when it comes to policy protection, security,
    price and IoT.
    Carriers tend to have a Field of Dreams “if
    we build it they will come” attitude about Smart Home programs.

    • More than triple the percentage of carriers, 55%, versus
      customers, 16%, say “It sounds great — sign me up!” when it comes
      to Smart Home programs and policies
    • Almost double the percentage of carriers, 72%, than customers,
      37%, believe that customers feel protected by their homeowners
      policies
    • 77 percent of insurance carriers compared with 31% of customers
      think insurance companies really care about improving customers’
      safety and security.
  • Major challenges exist for insurance carriers. The unknowns
    that make it difficult for carriers to finalize Smart Home programs
    include:

    • Inability to gain access to data from Smart Homes – 68 percent
    • Building analytics into the carrier underwriting process – 62
      percent
    • Expense required to purchase and install devices – 55 percent
  • Carriers see benefits to investing in IoT.

    • 87 percent believe IoT will improve customer relationships
    • 83 percent see IoT as an opportunity to attract new customers
    • 74 percent believe IoT will have an important influence on future
      products and services

In October 2016, NTT DATA surveyed over 1,000 U.S. homeowners online and
more than 100 insurance carrier executives involved in decision-making,
budgeting, strategy and execution.

Download a copy of NTT DATA’s research report, “IoT
Disruption and Opportunity in the U.S. Insurance Industry
.”

View NTT DATA’s IoT research on SlideShare.

Follow us on Twitter @NTTDATAinc
for updates related to this new research using the hashtag
#NTTDInsurance.

About NTT DATA

NTT DATA partners with clients to navigate and simplify the modern
complexities of business and technology, delivering the insights,
solutions and outcomes that matter most. We deliver tangible business
results by combining deep industry expertise with applied innovations in
digital, cloud and automation across a comprehensive portfolio of
consulting, application, infrastructure and business process outsourcing
services.

NTT DATA is a top 10 global business and IT services provider with
100,000+ professionals in more than 50 countries, and is part of NTT
Group, a partner to 85 percent of the Fortune 100. Visit www.nttdataservices.com
to learn more.

Contacts

NTT DATA
Melody Callaway, +1-704-247-3640
melody.callaway@nttdata.com