The shift from product to service provider is inevitable in the insurance industry. Digitalization is forcing insurers to focus on better service. Insurance firms are already adding benefits-in-kind or assistance services to their products. ‘But if you think consistently about insurance in terms of service, there is a wide variety of preventive services that can be added to your portfolio’, explains Dr. Matthias Gröbner, digital insurance expert. For example, ‘customers aren’t buying household contents insurance anymore. They’re buying home security packages. So the core insurance policy is supplemented by an additional assistance service. Combined with smart home technology, this helps prevent or minimize risks. For example, smart home technology can notify a security firm in the event of a break-in, helping prevent or reduce loss of property or damages. The technology can even detect a burst water pipe and inform a plumber’.

As a value proposition, insurance-as-a-service offers many opportunities. Insurers should take note. You can find more examples in Huffington Post. This article was first published on Matthias Gröbner’s blog. Matthias Gröbner is a partner and management consultant at Detecon.

For more information about the opportunities for service-based insurance in the smart home field, and the sensor-based and other services ALLYSCA can offer, click here.