Risk perception, mitigation preferences, and value of prevention in smart homes: implications for insurance and risk management
At a glance
- Project leader : Prof. Dr. Angela Zeier Röschmann
- Co-project leader : Prof. Dr. Joël Wagner
- Project team : Raphael Iten
- Project budget : CHF 263'464
- Project status : ongoing
- Funding partner : SNSF (SNF-Projektförderung / Project funding in humanities and social sciences / Projekt Nr. 207710)
- Project partner : Université de Lausanne / HEC Lausanne / Institut für Versicherungswissenschaft
- Contact person : Angela Zeier Röschmann
Description
Taking an integrated and systems approach, we study the new risk landscape and analyze the relation between risk perception, risk mitigation behavior and risk pricing. Since many of the households’ risks are covered by insurance, we embed our findings in the insurance economics context. Overall, our research aims to address the following research question:
“How do smart home technologies impact the risk perception, the risk mitigation preferences and the takeout of insurance cover?”
The findings contribute to a better understanding of the value of smart home concerning managing household risk and of aspects to consider in the development of the technologies as mitigation measure. Putting smart homes in the insurance economics context, we can derive design requirements for technologies and insurance products to successfully combine the prevention aspects of smart homes and the financial risk cover of insurance. The findings contribute to deliver on the techology's promises in terms of energy efficiency, health, safety, and comfort.