CONNECTED HOME: IMPLICATIONS FOR INSURERS UPDATE
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1 CONNECTED HOME: IMPLICATIONS FOR INSURERS UPDATE JUNE 2016 For updates on our research and publications, visit us on line at
2 Preface to the edition The Connected Home: implication for insurers June 2016 update covers the developments in Connected Home and Connected Home insurance over the period October 2015 April In October 2015, CP Consulting released their primer Connected Home: implication for insurers, the first research available on the topic that combined an indepth analysis of Connected Home and Smart Home, with a review of Connected Home insurance products (or partnerships) that are related to Home insurance, which we have defined with the name of Connected Home insurance. The seven months from October 2015 to April 2016 were very rich of market developments for Connected Home: Nest, the leader in Connected Home, experienced some problems, which possibly led his CEO and founder resigning in early June Amazon has emerged, as the most dynamic and determined supporter of Connected Home and their voice-controlled Amazon Echo hub has gained significant momentum Telcos and energy providers, especially in Europe, are emerging as serious contenders in the Connected Home providers landscape European retailers, following a similar trend already established in the US, are creating dedicated corners in their point of sale and / or dedicated concept stores Connected Home insurance was equally, if not more dynamic: as part of this new study we scouted and identified 14 products and partnerships Connected Home insurance which were launched or announced over the period October 2015 April These are in addition to the 15+ we found in our baseline study last year, so there are more than 30 initiatives in this space. This indicates the vitality of Connected Home insurance propositions. In this context, this research can be a valuable contribution to those insurers looking to learn more about Connected Home and Connected Home Insurance and / or that are in the process of formulating / reviewing their strategy in this space. I am looking forward to your comments and feedback about this research. Carlo Palmieri Managing Director CP Consulting 2
3 Table of contents EXECUTIVE SUMMARY... 6 A. KEY DEVELOPMENTS (OCT APR. 2016) CES 2016 was not all about the Smart Home More security and reliability issues have emerged in Smart Home Major Developments by manufacturers a) Nest faced substantial headwinds during this quarter and their leadership in the Connected Home space was put into question b) Google continues to invest in its Hub, separately from Nest c) Amazon Echo emerged as the best selling and most improved product in the Smart Home space d) Quiet semester for Samsung Smartthings e) Apple goes quiet about Connected Home, but the range of Homekit-enabled products is progressively growing f) Xiaomi / Yi expands outside of China and invests in Connected Home g) Bosch announces the set up of a new subsidiary dedicated to Smart Home h) Car manufacturers working on integration between Connected Car and Connected Home i) Telcos are sharing platform investments in Connected Home j) Energy providers continue to develop their Smart Home services k) Cisco acquires Jasper, Nokia acquires Withings l) Netatmo and Tado fundraise m) Honeywell and Schneider try to keep up with speed of change of their industry with new product launches and acquisitions n) Wink s local control o) LG and Sony also enter the Hub war p) Samsung envisages the TV as the home hub and plans to fit hubs in all new TV models q) Connected Appliances: Samsung and Whirpool announce new products r) In summary Major Developments by retailers and distributors a) John Lewis creates a 100 sqm dedicated space at their flagship store in Oxford Street dedicated to Smart Home b) 02 announces two massive concept stores where to showcase the new Connected Home product range c) Dixons Carphone launches home gadgets emergency service d) Best Buy investing in the Geek Squad capabilities to correctly install the Connected Home devices e) Sears Stepping Up Its Smart-Home Efforts with own label products f) In summary B. CONSUMERS ATTITUDE TOWARDS SMART HOME Introduction United States Western Europe a) United Kingdom b) France
4 4. Implications for marketing the Smart Home effectively C. CONNECTED HOME CURRENT MARKET SIZE AND FORECASTS Current market size a) Smart Home adoption b) IPTV penetration c) Home Energy Management d) Some sanity checking Market forecasts a) Overall market b) Smart thermostats c) Security devices d) Smart home support requests In summary D. CONNECTED HOME INSURANCE: PRODUCTS AND PARTNERSHIPS ALREADY ANNOUNCED Insurers quickly buying into Connected Home, even amid consumer scepticism New Products and Partnerships announced a) US b) UK c) France d) Spain e) Germany f) Italy g) Romania In summary APPENDIX APPENDIX 1 LEADING CONNECTED HOMES SOLUTIONS AND PRODUCTS PROVIDERS Alarm.com Amazon Apple Inc August Bosch British Gas Car Manufacturers D-Link
5 9. Deutsche Telekom Qivicon Dyson Elgato General Electric (GE) Google (excluding Nest) Huawei Honeywell Intel Iris by Lowes Jasper LG Electronics Microsoft Nest Labs Netatmo Nokia npower Philips Qualcomm Samsung Electronics Silicon Labs Schneider Electric Sony SoftAtHome Tado Tend Whirlpool Wink Xiaomi / Yi
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