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

NTT DATA Awarded Contract to Modernize Background Checks for U.S. Department of Justice

McLean, VA – September 15, 2021 –NTT DATA today announced the company was awarded a contract with the U.S. Department of Justice (DOJ) to build a case management system that will update the process for federal submissions to support the mission of the National Instant Criminal Background Check System (NICS). These submissions will update Criminal Histories and offer better tracking and relating of NICS prohibitors. The technology solution will synchronize disparate data from key federal systems, and simplify what are currently intensive manual processes to create a comprehensive, holistic NICS management solution.

READ MORE

NTT DATA Appoints Aaron Millstone to Digital Transformation Leader

PLANO, Texas – September 2, 2021 – NTT DATA today announced the company has appointed Aaron Millstone to Divisional President, Digital Transformation Services. Millstone has joined the company to transform and create a community of digital transformation practices focused on modern applications, data intelligence and automation, cloud transformation, customer experience and enterprise application services. Previously, Millstone led Oracle’s North American cloud strategic services and partner organization. Prior to Oracle, he spent 23 years at Accenture, where his career ranged from architect to account lead to global offering lead for enterprise transformations and finally to leadership in the Health and Public Service business unit.

READ MORE

NTT DATA Empowers Insurance Clients with Duck Creek Partnership

PLANO, Texas – August 24, 2021 – NTT DATA, a digital business and IT services leader, announced today that it has partnered with Duck Creek Technologies (Nasdaq: DCT), a leading provider of SaaS insurance core systems, to accelerate and optimize property and casualty insurers’ digital transformations through adoption of the Duck Creek Platform.

READ MORE