Plano, TX – April 4, 2017 – 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 @NTTDATAServices for updates related to this new research using the hashtag #NTTDInsurance.

 

 

About NTT DATA Services

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.

Media Contacts

Latest News

Alliance Develops Shared Diversity and Inclusion Goals

SANTA CLARA, Calif., April 29, 2021 – NTT DATA, Intel, Snap Inc., Nasdaq and Dell are announcing a new industry coalition, Alliance for Global Inclusion, and have developed shared diversity and inclusion metrics. These metrics are based on a global survey launched by Intel in 2020 to determine the status of diversity and inclusion progress at 12 major companies. The survey data is available on a new website and forms the coalition’s inclusion index. The index serves as a benchmark for companies to track diversity and inclusion improvements, provides information on current best practices and highlights opportunities to improve outcomes across industries.

READ MORE

NTT DATA Appoints Michael Petersen, M.D., as Chief Clinical Innovation Officer

PLANO, Texas – April 28, 2021 – NTT DATA Services, a global digital business and IT services leader, today announced Michael Petersen, M.D. has joined as the new Chief Clinical Innovation Officer. Dr. Petersen is dedicated to helping clients solve complex challenges around health equity and social care in which data, analytics and technology can be applied to make a meaningful shift towards positive human-centric healthcare experiences.

READ MORE

More Than 80% of Financial Institutions Believe AI is the Key Competitive Driver to Success NTT DATA Study Reveals

PLANO, Texas – April 21, 2021 — According to research findings by NTT DATA, senior financial services executives overwhelmingly agree that implementing Artificial Intelligence (AI) will be the key competitive driver of success over the next few years. In fact, 83% agree that AI is creating new ways to differentiate offerings and win customers, driven by access to unique data sets; however, obstacles remain and adoption lags.

READ MORE