The ramifications of COVID-19 are far from over for the insurance industry. Customer expectations shifted, and they weren’t thrilled with their insurers’ digital setup. The abrupt shift to virtual business operations exposed vulnerabilities and forced many companies to increase their cybersecurity significantly. Property and casualty (P&C) risks also underwent a dramatic transformation. People are staying home more than ever, which naturally increases the likelihood of property damage and injuries. The following are some of the biggest trends poised to disrupt the P&C insurance market:
Revamping Omni-Channel Communication
Businesses in every sector rapidly learned the need for omni-channel communication in the pandemic zeitgeist. However, incorporating text, chat, and other forms of communication doesn’t automatically translate to a better customer experience. Customers expect seamless digital interactions. They want to be able to switch from texting to a phone call without needing to repeat themselves. Many insurance companies are revamping their communication channels and equipping agents with digital tools to secure customer satisfaction and loyalty.
Focusing on Comprehensive Coverage
COVID-19 drastically altered policyholders’ risks, and their coverage expectations shifted accordingly. They have different insurance needs following the prolific rise of the gig economy and remote work. Insurance companies are changing their focus to provide comprehensive insurance packages that reflect their customers’ altered lifestyles. For example, a comprehensive work-from-home policy may bundle identity theft protection, homeowners’ or renters’ insurance, and usage-based car insurance.
Pay-As-You-Go Insurance
Pay-as-you-go, pay-per-use, and usage-based policies have gained a foothold in the insurance industry. With the pandemic forcing people to stay at home, many customers questioned the need for an expensive auto policy. They still need coverage for necessary trips, but their mileage is significantly lower, as is the risk of a collision. Customers increasingly want flexible coverage options that protect them only when they need them. For example, some insurance companies offer usage-based car insurance. Instead of the usual rate factors, such as age and location, insurance providers leverage telematics data to ascertain the driving frequency and driver behaviors.
The pandemic upheaved business as usual within the insurance industry, and it will continue to influence insurance trends in the coming year. Contact Windermere Insurance Group to learn how we can help protect your company from evolving risks and exposures.