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Paying the premium
Insurance and security, two different sides of
the home protection scenario....
In a move that will interest many domestic security systems
manufacturers and insurers, Cocoon, the sound detection
based home security system, has announced a deal with
PolicyCastle, a digital home insurance platform, giving people
buying home insurance through the service a 15% discount when
protecting their home with the connected security system.
This is indeed an interesting development as it is the first
time, that we’ve heard of, where a DIY security product is linked
to a reduction in insurance premiums. In the past insurers tended
to expect a basic level of security in the home before they would
agree cover (one report by GoCompare suggests that 4% of
people lie about having an alarm fitted) and many offer
reductions for further measures being in place and maintained.
Cocoon is a 120° HD camera with multi-room protection via
infrasound motion detection all supported by an app. Nothing
unique there, but the tie-in with the insurer is of note.
Sanjay Parekh, Cocoon CEO said: “The connected home has
gone through a technological evolution, having mostly failed to
deliver much real-world benefit to customers. Working together
with PolicyCastle and other insurance partners is just one way to
kickstart change in the home insurance industry and force larger,
established brands to improve their offerings to UK customers.”
Which may well be true in terms of making other insurance
companies think about offering some kind of reward for those
adding connected security devices in their homes. However it is
the comment from the insurer in this story that makes for closer
consideration as Edmund Dilger, PolicyCastle CEO said: “Smart
home devices have the opportunity to revolutionise the way we
maintain and protect our homes and we are delighted to support
customers who are using them.”
Now here’s my problem. The reason why insurers like to offer
you a policy at all and why they will even give out premium
reductions is that having a professionally installed security
system on the premises reduces the chance that you’ll become a
target in the first place. Insurers play the odds game; risk versus
reward. They know a burglar seeing an alarm system is less likely
to try his luck there than on a house that is unprotected. So
having a ‘listening’ camera in the front room won’t reduce the
chances of being a target, the insurer will still be getting calls.
The story is a nice bit of marketing for both parties, but I’d be
surprised if insurers welcomed any DIY indoor camera bought off
the internet as a reason for rewarding customers in the future.
Cocoon retails at £159 but there are much cheaper options out
there that offer lower level protection again. Perhaps
homeowners need to consider if it is savings they want, or
security.
Andy Clutton
EDITOR
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