Neos limited presence among UK consumers may be challenging for Sky

Aviva has sold smart home technology provider to Sky, after a successful partnership which modernized the insurer’s home insurance offering and saw it hold the largest market share in that line, according to GlobalData

GlobalData’s 2020 UK Insurance Consumer Survey found that only 3.9% of consumers had heard of Neos. This is most likely because it is a start-up and socializes in the technology, rather than dealing with customers. This may present a challenge for Sky in marketing Neos’s connected home products, however, the smart home provider has been influential in increasing the use of smart home technology in the UK. It has been a leader in a range of innovative smart home products in recent years, such as smart doorbells, and leak detectors.

GlobalData’s survey also found that 25% of respondents who had a household insurance policy in the UK had a smart thermometer, which they could control from their smartphone. Similarly, 38.5% had the ability to control lights in their home through their smartphone.

Ben Carey-Evans, Insurance Analyst at GlobalData, comments: “These statistics highlight the extent to which connected home features are becoming commonplace in the UK. Aviva, with the help of Neos, has been at the forefront of this.”

Aviva has been the market leader in household insurance in the last three years, and held a share of 10.5% in 2020, according to GlobalData.

Carey-Evans continues: “Aviva purchased a majority share in Neos in 2018, though they had formed an established partnership prior to that. It has often been used as an example of a successful collaboration between an incumbent insurer and a technology start-up. Neos has played an important role in Aviva’s household insurance offering, so it seems likely Aviva will look to continue this in house or find a new partner. Similarly, it will be interesting to monitor whether this is an investment for Sky, or the beginning of a move into smart home technology, which has become a key part of household insurance.”

More Media