Earlier this summer, American Family announced that its Proactive Home Protection discount and a partnership with Nest to provide customers with free smart smoke and carbon monoxide alarms. It’s a small step that indicates a very large departure. The Madison, Wisc.-based carrier’s movement into Internet of Things-powered proactive protection measures is part of a larger trend that has the potential to expand the insurance business model beyond the traditional indemnity product paradigm. It implies not only more frequent interaction with customers, but also a more intimate relationship with customers based on unprecedented levels of trust.