Individuals, as well as businesses, are getting increasingly worried about the future of their assets and property. According to a recent Insurance Global Market Report, the compound annual growth rate of insurance across 50 geographies is expected to hit 12.9% over 2021. Which current trends will make this optimistic prognosis a reality? Check out the text below to learn the trends that will shape the insurance, and what marketers and senior management can do to adapt.
Table of Contents
Automation and Triggered Email Campaigns
Insurance agencies work with hundreds, thousands, or more policyholders. Each day, policies are written up and need to be sent, reviewed, renewed, or updated with additional coverages. How can an insurance agent send the right message to the right person, at the right time? Based on the changes in an insurance agency’s information management system, which contains all of the clients’ data, triggered email campaigns are sent to prospects and policyholders automatically. For example, when a client’s insurance policy is due for a renewal, Pathway automatically sends out pre-renewal and renewal letters, which also include a survey, to the policyholder on behalf of the brokerage. These intuitive workflows can also be used for a myriad of other email communications, such as upsell, cross-sell and referral campaigns. In addition, clients are also given the freedom to access all of their policy documents and proof of insurance online through their own self-service portal which is integrated onto the brokerage’s website.
All of these automated emails are customized according to the insurance agency’s own branding specifications, and are very personalized to each individual policyholder. In this way, Pathway helps insurance professionals promptly address the policyholders’ needs, in a bid to help them better communicate with their clients, and build lasting relationships.
Intuitive Insurance Apps
Today, around 74% of insurance agencies already provide apps to their clients. The highly competitive, fast-growing insurance market forces insurance agents to provide increasingly convenient services. This need for user-friendly, one-stop-shop apps has been further stressed by the Covid-19 crisis, forcing businesses to operate remotely. Many insurance agencies allow policyholders to request quotes, download, read, review and update their policies in-app, at all times. Insurance agencies who wish to remain cutting edge will have to leverage this technology and fight to provide superior service.
Review Sites
According to recent surveys, more than 80% of consumers read online reviews before making a purchase. If you want online visibility, simply working on your SEO strategy and putting your website on Google’s first page isn’t going to cut it. Insurance agencies do not differ from any other type of service in this manner, and positive reviews on Google Reviews and Yelp are a key ingredient to a successful marketing strategy. Review sites enhance competitiveness, pitting insurance agencies against each other by comparing prices, app quality, customer service, etc. Ultimately, this forces many companies to lower their price range, and extend coverage in an effort to appeal to prospects.
On-Demand Insurance
One trend that has become more popular during the Covid-19 crisis is on-demand insurance. During lockdowns, for example, many people found little to no use in their car insurance policies. This gave rise to a new approach to car insurance policies that lets policyholders insure their vehicles for the number of kilometers they drive, rather than for a full year. During 2020, many policyholders asked their insurance companies for at least partial post-lockdown refunds, with varying success. The pay-per-mile system seems to work better for everyone, with some exceptions such as theft while parked insurance that remains annual.
Bundling Insurance Policies
Bundling insurance refers to another trend that has taken hold over the past couple of years, that of purchasing various types of coverages with the same insurer. It’s time-consuming enough to find one insurance company policyholders can trust. From the policyholders’ perspective, meeting all of their insurance-related needs is super-convenient. Home and auto insurance are often bundled together, just like life and medical insurance. Some insurers even offer discounts and flexible compensation costs to foster brand loyalty and nudge policyholders towards purchasing multiple policies.
Increased Demand
The rising unpredictability of 2021 is expected to give rise to the demand for life and disability insurance in younger age groups. The post-pandemic anxiety over health issues is also likely to result in lower insurance prices, due to higher competitiveness. Still, according to Deloitte’s 2021 Outlook, the premiums are expected to recover over the current year. As the global health crisis slowly loses its grip and health-related risks decrease, the prices will eventually even out.
Conclusion
People expect increasingly convenient online services, and insurance companies are going to have to adjust. Automation will become the most effective way to avoid missing out on new opportunities and keep nurturing long-term client relationships. Finally, the 2020 pandemic crisis will result in new product packages, such as pay-per-mile car insurance, an innovative technology solutions which benefits both insurers and policyholders, and goes a long way in building trust.
