Consumers Aren't Buying the Smart Home, But Insurers Are

By Stacey Higginbotham for Fortune:  The industry has stalled. But while consumers are scratching their heads, property and casualty insurers have been testing connected doorbells, water sensors, smoke detectors and dozens of other devices. On the life insurance side, wearables and other devices are also in the R&D labs, although that’s less of a focus for this story, since consumers have tended to adopt wearables more readily than the connected home concept.

On the P&C side, State Farm is launching a program that will give an all-in one connected security device called the Canary to first responders soon. Last month, American Family created an innovative program with connected doorbell provider Ring, that offered customers a discount if they bought the device, but also would reimburse your deductible if someone managed to break in. American Family also subsidizes the cost of a Nest Protect smoke alarm. USAA has backed a connected car startup called Automatic, while Progressive  PGR 0.10%  has already teamed up with Zubie, another connected car device maker, to deliver discounts on auto insurance for drivers who share data.

For insurance firms, the decision to back these startups can range from helping to prevent losses, which can boost profits, and helping make the insurer a more positive and proactive presence in people’s lives. Ryan Ryst, director of innovation at American Family, says that in creating programs around connected devices, an insurance company has a chance to remind people that insurers are acting to protect policy holders.  Cont'd...

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