It is always interesting to look ahead at the start of the year to identify what trends might shape the insurance industry, but particularly in 2021 with the pandemic changing the world so much in the last year. This will certainly influence the insurance industry in 2021 and beyond, including the following trends.
Working From Home
One of the biggest changes as a result of the pandemic has been the switch to remote working and many businesses plan to continue with this even once the pandemic has ended as it brings so many perks. From an insurance standpoint, this means that insurance companies will need to establish remote long term relationships with clients and could even help them to attract new clients as geographical position is no longer an issue. Of course, there are cybersecurity concerns with a switch to WFH and businesses will need to be covered by a technology insurance company and have protection in place.
Data to Play a Key Role
Data continues to play a major role in modern life and the availability of real-time data can play a huge role in the insurance sector. Data can help shift protection to prevention in terms of insurance, which can help insurers to build trust, establish fairer premiums and utilise machine learning.
Digitalisation
In years gone by, many industries have embraced digitalisation yet insurance has been hesitant (largely due to existing practices being sufficient). The pandemic has given the insurance sector a push into the 21st century and now many large insurers have undergone a digital transformation and are using tech to handle claims, attract new clients and improve their services.
Tailored Products
In a data-driven world, consumer expectations are changing across the board and this is now including the insurance industry. With all kinds of data collected from items such as fitness trackers and car telematics, consumers now expect insurance products which are tailored to them according to their own behaviours and needs which will result in fairer and more accurate premiums.
“Smart” Car Insurance Policies
Autonomous and semi-autonomous driving is on the rise, which means that The Highway Code will be changing with the insurance industry having to follow. This means that new “smart” car insurance policies will need to be devised which will be capable of knowing whether it was the operator or manufacturer to blame for any accidents.
These are a few of the main trends that are likely to shape the insurance industry over the next year and perhaps beyond. So much of life has changed in the last year as a result of the pandemic and the insurance industry always has to adjust to what is happening in the world, so it looks set to be a busy and challenging year ahead.
