To learn more and subscribe, please click here.Zurich, one of the world s largest insurance companies, is now offering a monthly discount on homeowner s insurance premiums to customers who use a connected alarm system offered by Cocoon, according to SC Magazine.If a consumer decides to install and use the alarm system, they will receive a 10% discount on their monthly home insurance costs.The discount from Zurich is not particularly unique but highlights how insurance companies are valuing IoT deployments.

Home insurance companies have offered discounts to clients on the installation of home security systems and corresponding lower prices for insurance premiums when such a system is installed for many years.That's because a home with an alarm system is 300% less likely to be burglarized than a home without one.

However, smart alarm systems add more value than nonconnected alarm systems because they add more insight into what is happening in the home through increased analytic tools and mobile applications.As the smart home market grows in the coming years, insurance companies will continue to find ways to leverage the smart home solutions.

That's up from 5% in 2014, indicating a large YoY growth in the number of insurers leveraging smart home solutions.There are several challenges for companies taking this approach, however, because the U.S. smart home market has yet to truly take off.

Quirky's announcement that it was filing chapter 11 bankruptcy — and selling off its smart home business, Wink — highlights this well.At its current state, we believe the smart home market is stuck in the 'chasm' of the technology adoption curve, in which it is struggling to surpass the early-adopter phase and move to the mass-market phase of adoption.There are many barriers preventing mass-market smart home adoption: high device prices, limited consumer demand and long device replacement cycles.

However, the largest barrier is the technological fragmentation of the smart home ecosystem, in which consumers need multiple networking devices, apps and more to build and run their smart home.John Greenough, senior research analyst for BI Intelligence, Business Insider's premium research service, has compiled a detailed report on the U.S. smart home market that analyzes current consumer demand for the smart home and barriers to widespread adoption.

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