Technology has made the homeowner market a safer place over the last five years, according to Joanne Musselle, chief underwriting officer at insurer Hiscox.
She claims technologies, such as intelligent lighting systems that learn to mimic movements around the house, are helping to deter burglary and lower insurance costs. Other advances, including water shut-off systems and the greater use of alarms, are also reducing the chance of a claim being made. They are also limiting the size of the claim when things do go wrong.
Although this area of technology is emerging, Musselle said that it has huge potential and could shake up the insurance market.
“People are more alert to risk mitigation,” she told the Financial Times. “Eventually, you’ll have one smart device that controls everything. It’s really exciting. The ability to stay connected to homes from anywhere in the world will help with risk mitigation.”
These technological advances were said to be changing the way insurers look at risk. Musselle said that these solutions were already impacting on the price of home insurance in some markets.
She adds: “Discounting on premiums for people who have these systems is coming to market. It is already happening in the US.”