Each year, new challenges and opportunities arise for insurance agents. From the increase in consumer technology to the rise in buyers opting for tiny homes, these trends specifically influence and shape the future of the insurance industry.
Read on to learn four new homeowner trends this year and how they are impacting the insurance industry.
It’s projected that by 2020 there will be more than 20 billion connected devices worldwide — up from the already 6.4 billion this year. With the mad dash to get all of these new devices designed, produced and hooked to the internet, security has taken the backseat. In many cases, there is a definite lack of standards when it comes to security, which makes it difficult to create secure networks. And because there is a learning curve with many of these new devices being produced, security shortcuts have been taken in pursuit of convenience.
While security may be increasing risks amongst homeowners, the increasing desire to own “smart homes” is promising numerous benefits.
Smart homes are being developed that could issue early alerts to mitigate the risk of damage and injury. For example, if disaster strikes, a smart home would be able to dial 911 immediately and inform the homeowner’s insurance agent or agency of the incident. Additionally, other developing smart home technology could help decrease the risks associated with everything from home invasions to water leaks.
Alexa Home Automation and Similar Devices
From Alexa to Amazon Echo to Google Home — millions of homeowners are now utilizing various voice interfaces to make their lives a little easier at home. But while these devices may make certain things easier, they pose serious privacy and data-usage concerns. Although this technology is relatively new, it has influenced how insurance agencies are thinking about client coverage.
While technology is obviously a huge homeowner trend influencing the insurance industry, the tiny home trend is set apart. Thanks to the fall in homeownership, along with high rates of debt for millennials, the tiny home movement has exploded in recent years. Now more than ever, individuals are opting to live in tiny homes, which are typically between 100 and 400 square feet. Insurance agencies have take notice and now many are offering insurance geared specifically toward tiny homes.
Learn More About ASI
ASI is one of the largest homeowners insurance carriers in the United States. Through a network of independent agents, the company offers home, condo, renters, dwelling fire, and flood insurance in more than 40 states. Find out more at AmericanStrategic.com.