Why Insurance Companies Want to Subsidize Your Smart Home

Stacey Higginbotham for MIT Technology Review:  Insurers such USAA and American Family have lately begun offering to strike a high-tech bargain: wire your home with Internet-connected devices such as a new thermostat, and get a discount on your home insurance policy in return.

Offers like that could speed up the adoption of smart gadgets, revamp the insurance business, and transform how we manage our homes. In the future, your insurer might call a plumber before a pipe bursts, for example. But the data needed to help prevent leaks or burglaries will also introduce new risks, such as vulnerabilities to data loss or ransomware.  Cont'd...

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