The Federation of Egyptian Insurance Companies has sounded the need for insurers to cooperate with real estate developers and technology providers to create insurance products for smart homes.
In its latest weekly bulletin released on 9 March, the federation highlighted that the shift towards smart homes is a reality that poses new challenges to insurers as these homes rely on advanced technologies such as the Internet of Things (IoT), AI and automation.
However, this technical development has been accompanied by an increase in potential risks, most notably, cyber attacks, technical failures, security breaches and legal liability. These risks require modern insurance solutions that keep pace with the changes.
Cyber threats may lead to hacking of personal data, control of home systems or disruption of vital devices such as heating, lighting and security systems, which may cause material damage and huge financial losses. The threats may result in challenges such as home thefts if smart security systems are hacked or malfunctioning.
In response to these challenges, the federation said the insurance sector has begun to design specialised insurance products for smart home owners. Traditional insurance policies are no longer sufficient to cover modern risks.
Preventive insurance programmes have also been drawn up, integrating security consultations, advanced electronic protection systems and periodic tests to detect security vulnerabilities.
The federation also stressed the importance of enhancing insurance awareness among smart home owners, pointing out that they need to choose the appropriate insurance coverage and adopt cyber security measures to protect their homes from potential risks.