Smart home technologists now have a new advocate: insurance companies. Businesses like State Farm, USAA, and American Family are apparently helping to spur smart home adoption by offering incentives for customers willing to install technologies like a Nest smoke detector or Canary camera, MIT Technology Review reports.
The thinking is that these connected devices will help homeowners catch problems like fires and burglaries before they turn into bigger issues requiring expensive insurance payouts. Imagine a moisture sensor alerting you to a burst pipe before it floods your entire apartment. The immediate information means you can turn off the water faster and contain the damage. So, rather than needing to cover the cost of new floors, walls, and furniture, your insurer just has to pay for the basic fix.
Some insurance companies also see a future of optimizing business operations with the help of smart home data. Everything from processing claims to predicting maintenance needs can be improved with data-driven automation. Subsidizing smart home technology can mean a healthier bottom line both today and as devices continue to evolve.
- Why Insurance Companies Want to Subsidize Your Smart Home [MIT Technology Review]