5 ways technology is changing homeowners insurance

July 22, 2022 10:57 AM

In today’s booming housing market, insurers are looking for ways to easily maintain and reach new customers and leverage new technology in the process.

Insurers such as Nationwide are expanding their partnerships with digital technology providers, while technology firms like DIY smart home technology company Notion are delivering services that are helping insurers with policyholder acquisition, price differentiation and client retention.

Read our roundup for more on the impact of digital technology in homeowners insurance.

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What digital tech may help insurers identify property changes

The COVID-19 pandemic has changed numerous aspects of our daily lives, but despite the economic pressures, owners have continued to invest in maintaining and remodeling their properties.

For insurers, the challenge is how to identify and verify the changes that have been made on insured homes. As a result, many are turning towards digital technology and implementing advanced analytics, data-first strategies and virtual technology to help improve their businesses.

Virtual inspections, change detection via proactive monitoring, online building permit information, replacement cost data and virtual technology are just some of the ways insurers are accessing new digital technologies to get a better view of property risk.

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What digital tech may help insurers identify property changes

Is insurtech keeping up with the housing boom?

The housing market has remained relatively stagnant during the pandemic. But as the economy starts to open up again, housing prices have risen rapidly, achieving their highest annual growth since 1979.

But while homeowners and buyers have been taking full advantage of the housing boom, the insurance industry has been slow to explore how it can leverage technology to keep up with the new insurance landscape.

How will risk be impacted by lifestyle changes post-pandemic, such as working from home instead of commuting? How will the frequency and severity of claims be affected with property owners spending more time at home? Can insurtech provide the answers?

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Is insurtech keeping up with the housing boom?

Nationwide expands smart home, commercial fleet IoT

Nationwide continues to implement digital technology in its business operations. New partnerships that impact the company’s commercial fleet as well as its smart home property monitoring program are just some of the ways.

The company’s partnership with NoCell Technologies aims to utilize technology to help remove distraction risk for its fleet of truck drivers. “Trucking businesses have more advanced technology and safety cultures than ever before to reduce risks for drivers and the motorists around them,” said Gary Flaherty, senior vice president of E&S commercial auto at Nationwide.

The company also expanded its partnership with DIY smart home technology firm Notion. The new deal will give customers who opt into the smart home program a discount on the sensor-driven home monitoring system and savings on their homeowners insurance policy premiums.

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Nationwide expands smart home, commercial fleet IoT

What insurers should know about renters today

The booming housing market has given rise to the rapid growth of a new segment of potential customers for insurers: people unable to buy and obliged to rent who need rental insurance.

With an increased number of renters, insurers have the opportunity to reach this group and provide them with a variety of services. To do so, insurers need to connect with them and improve their understanding of their wants and expectations.

While first-party data provides much of the traditional information insurers typically rely on, they are now looking towards predictive data to gain the insights for a comprehensive view of today’s renter and their potential future client.

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What insurers should know about renters today

Notion Q&A: Home security technology, insurance partnerships

Smart home monitoring systems, which utilize sensors to detect and notify homeowners of water leaks, open doors and windows and temperature changes are increasing in popularity with both insurers and their property-owning customers.

In an interview with Digital Insurance, DIY CEO Brett Jurgens discussed the advantages of smart home monitoring for policyholders and insurers, how the company works with insurers to innovate and reduce losses, and what the future of home security technology holds.

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Notion Q&A: Home security technology, insurance partnerships