This Insurance Firm Is Endorsing IoT. Know How!

Zurich Insurance is offering a 10% discount to home insurance buyers who get an IoT alarm installed at home

Internet of Things (IoT) is slowly yet steadily entering virtually all spheres of our life. But who would have thought that an insurance company would show keen interest in IoT as well, so much that it would start offering discounts to customers embracing IoT at home.

Zurich Insurance, a global insurance company based out of UK, has entered into such arrangement with Cocoon, a smart home solutions provider, to realize its vision of changing the nature of risk through the use of future tech. So, Zurich Home Insurance buyers in UK who get Cocoon IoT Smart Home solution installed at home will get a 10% discount on the insurance. The deal doesn’t end here: customers also get premium discounts on Cocoon devices.

Commenting on this partnership with Zurich, Sanjay Parekh, CEO and co-founder of Cocoon, says: “This partnership with Zurich helps us reward those taking a smarter approach to protect their home and loved ones.”

A win-win proposition?
This sure looks like a win-win proposition for consumers as well as Zurich and Cocoon. Consumers save money and protect their home, and the benefit for Zurich possibly would be a lower number of home insurance claims that customers raise in event of home burglary or thefts. The benefits could be substantial if one considers that 743,000 incidents of domestic burglary were reported in the year ending September 2015 (according to the ONS Crime Survey for England and Wales). And for Cocoon, the benefits are direct: increased sales.

However, IoT analysts and Security experts have their own concerns. Most of them are not convinced with ioT devices and fear that there are a lot of security threats involved. Yes there are people like Andrew Tierney, a Security Expert at Pen Test Partners, who think such technology can work well, but most of the reviews around IoT devices have had not been that positive.

Even Andrews has questions about usage of Cocoon like IoT devices at home. While talking to, he said, “Sensors using similar technology have been about in the past, but never really used for homes. It could work quite well, but would need to be able to discriminate between genuine issues and things like people slamming doors, drafts, etc.”

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