Leveraging the Connected Decade:

5G networks have
the potential to accelerate
the pace of change and
the art of the possible.”

Keith Demmings,
Executive Vice President,
President, Global Lifestyle

The way consumers interact with connected technology is at an inflection point. Consumer buying behavior is being disrupted both by a new focus on remote working, learning and connecting with others, as well as by technological advancements like 5G and artificial intelligence. Lower latency, increased data capacity, automation and truly intelligent technology will create virtually endless possibilities for connected customers in the next decade. As consumer adoption and interaction with technologies advance around the world, so do opportunities to grow market share in developing and growth markets.

Adoption of 5G technology for cars, homes and devices

Over the next decade, a sea change of global innovation and interoperability across connected devices, cars and homes will redefine the connected landscape. As we think about the progress that will be enabled through technological advancements, the possibilities are almost endless. Assurant’s Connected Decade research shows that higher awareness of 5G’s impact correlates to higher intent to upgrade mobile devices and other smart products. This trend introduces opportunities for carriers and other companies to drive demand for 5G-enabled products through education and awareness campaigns.

Trade-in, upgrade and asset disposition programs will be critical

Companies involved in Connected World businesses will need to continue tailoring product and service offerings based on local needs, establishing the right levels of support and protection that help consumers feel confident in new smart technology purchases. We’ll leverage our global asset disposition network to help mobile companies monetize legacy devices, while complexity of new 5G devices and consumer dependency on digital will continue to drive attachment to protection services.

Assurant is ideally positioned with these solutions

Building brand loyalty through post-sale satisfaction is critical to expanding a consumer’s connected ecosystem. At Assurant, we’re using these types of insights to develop consumer-focused programs that help our partners win business around the world, including establishing advanced diagnostic tech support that helps consumers get the most out of the technology they’ve come to rely on; tailoring mobile trade-in and upgrade programs that support the adoption of 5G devices around the world; and using our global asset distribution network as well as our repair and logistics services to drive a superior customer experience.

Led by mobile, 45% CAGR in Connected Living net operating income⁽¹⁾ 2016-2020

With 54 million mobile subscribers, our Connected Living business continues to gain share through alignment with market-leading partners and promising new entrants. We grew Connected Living NOI⁽¹⁾ from $60 million in 2016 to $265 million (45% CAGR) in 2020. On the back of favorable market trends that are driving higher attachment rates, new clients and offerings are driving subscriber growth and creating new profit pools. And Assurant’s embedded value is expected to grow as new programs scale, particularly in key markets like North America and Asia.

Footnotes

Connected Living net operating income is equal to GAAP net income.