It is one of the oldest businesses still operating, but change is coming quickly to the insurance market, in part thanks to a global pandemic.
The insurance business long has been dominated by big companies acting cautiously and operating conservatively to provide the necessary coverage to clients of all types. But these concepts are changing now with technological advancements and changing client demands. Some of this change is the legacy of the COVID-19 pandemic, but some of it was already well underway as a product of client behavior and technological advancements.
For example, insurance businesses long have relied on the best article writing services for insurers to promote their products, typically the more traditional offerings calculated through long-held risk practices. But as the insurtech field has emerged to help target policy offerings through technology that can also provide savings to clients, a need has emerged for the best article writing services for insurtechs.
Here are key trends to keep an eye on in the coming year.
Growth of insurtech
Insurtech is expected to flourish as more small companies and agents explore advancements that larger firms are less interested in, like ultra-customized policies, social insurance, and the use of data from personal devices to determine tailored premiums for clients. This trend is here to stay and has the potential to revolutionize the insurance business, particularly for those in the industry who are not afraid to embrace technology and the power it offers to quantify behavior and risk. But they will have to navigate carefully to reduce risk.
Digital services expand
Thanks to the global pandemic, many industries, including insurance, had to up their game when it comes to digital services for clients and customers. There will always be a need for more traditional channels of communicating in person with an insurance agent or company, especially when it comes to addressing more complex issues for clients. But consumers also expect the access and convenience of digital service to carry out much of their insurance business, so insurance businesses will have to meet the demand and continue to improve their digital offerings. The pandemic accelerated the trends toward this new way of business and consumers are not likely to return to their old habits pre-COVID-19.
Diversity is expected
Another legacy of the pandemic is an expectation from clients that they will carry new lines of coverage that they previously didn’t consider, like event cancellation and business interruption insurance. The reality of COVID-19’s quick spread across the globe led to large-scale closures of businesses across the country and the cancellation of planned events. Many businesses found themselves unprepared for these necessary steps, and aren’t likely to remain unprotected in the future. Insurance companies and agents will need to expand their offerings when discussing their clients’ needs and make sure they can provide all the coverage they seek.
Clients expect more
Consumers know when they are paying too much, and they will take action if they believe insurance companies aren’t treating them fairly. This became even more apparent in 2020 during the pandemic as most people significantly decreased their driving, yet they continued to pay the same premiums for their car insurance. Insurance companies eventually reduced their premiums or provided rebates to customers, but the realization alerted consumers to the choice they have in the market. Consumers no longer will accept a one-size-fits-all approach to insurance and will expect adjustments based on their own, individual behavior (see insurtech trend noted above).