The Internet of Things (IoT) could bring to life the once fabledautomated home that those of us old enough to know, saw portrayedon our TV screens when the Jetsons were all the rage. Asreality catches up with fiction, IoT has the potential to transformP&C business models and business offerings, potentially changing the very notion of what an insurancecompany means to consumers and what its role is in their lives. Inour previous article, we presented an overview of coming IoT changes, including theshift of insurance premium mix from auto to home with thelikelihood of technologically advanced automobiles reducing thefrequency of accidents, and as shifts in consumer behavior anddemographics suggest that car ownership and usage may trend lower.In this article, we dig deeper into how insurers can use theconnected home as a significant revenue generator and as an entrypoint into other products and services

Over the next decade, the IoT is likely to penetrate quickly,connecting half of all U.S. households, filling them with data andinteraction. Today your house can send you a text when your pipesspout a water leak—tomorrow embedded sensors could trigger anautomatic shut-down, while generating a work order for theneighborhood plumber.

Consumers will likely see the connected home as a set ofpossibilities—expanded entertainment options, greater physicalcomfort, a connected lifestyle, and reduced risk—and use it to seekbroad solutions to everyday tasks and big life events. As theyembrace propositions that seamlessly combine these possibilities,consumers will blur existing market boundaries. Players such asAT&T are even linking connected car and smart home technologiesso users can control their homes from a vehicle dashboard.