How will AI change the way homes are insured?

This month, Aviva-backed smart home security system Cocoon revealed that it had signed a deal with digital home insurance platform PolicyCastle, which will see policyholders receive a 15% discount when they protect their home using the system. While telematics systems are widely used in the UK motor insurance industry, smart home technology is still in its infancy by comparison. However, the signs suggest that it could well be the next frontier in revolutionising insurance: in fact, 75% of home insurers expect smart home technology to positively affect risk mitigation, according to recent stats. Insurance Business asked Sanjay Parekh, CEO of Cocoon, about the benefits for the insurance industry of utilising smart home tech, and how AI will change the way homes are protected. "The development of AI-powered'smart' home security offers insurers the ability to more accurately price risk, reducing the cost of insuring security-conscious homeowners which in turn can be passed back as a reduction or saving on their premium," Parekh began.