During the pandemic, the insurance industry like the rest of the world had to adapt to the new reality which included facing an unprecedented volume of claims. But, the silver lining that emerged is that people became aware of the value of protection in uncertain times. This paradigm shift means that some exciting new trends in the insurance industry have emerged both for customers and insurers while reinforcing that some trends are here to stay.
We’re diving into the six noteworthy trends that are on our radar:
Hello hybrid
Job seekers in the insurance industry are leaning more towards companies that have implemented a hybrid workforce model because they have enjoyed the freedom and flexibility that the pandemic has afforded them. As a result, insurance companies globally are looking to create more dynamic approaches to work.
Tech meets touch
Technology has been implemented at a large scale to drive efficiency in insurance businesses. But, the pivot that emerged is that tech has to be deployed for improving the customer experience – not only for attracting customers but for retaining them. Insurers are also largely grappling with the post-covid conundrum of how to manage the blend of human interaction and digital-first strategies.
Digital transformation
Insurance companies have found themselves pivoting towards digital sales and the trajectory is that this will become a key component of sales strategies going forward. The chat capability within WhatsApp is a product of digital transformation that has revolutionized the way that consumers interact with insurers – we are likely to see more of this type of integration of sales into other communication channels.
Here to stay
Incumbents continue to cement their position in the market with interim results from the top insurers in South Africa indicating that they are keeping up with the rapidly changing environment. Nonetheless, we believe more collaboration is to be expected between incumbents and new entrants in the insurance industry – because they often complement each other – and institutional knowledge is crucial to long-term success in the market.
Customer is still king
Unqork reports that 73% of customers surveyed said that customer experience is a key factor in their purchasing decisions. Couple this with the growing personalization trend (everything from vitamins to your cellphone plan can be customized) and a burgeoning differentiator in the industry will be personalized premiums and bespoke one-stop solutions.
The wellness buzz
Wellness felt like a fleeting trend in 2019 that had a surface-level impact on the insurance industry, but everyone became acutely aware of the value of wellness during the pandemic. Consumers are more health-conscious which in turn means that we can expect to see insurers offer products that tie into health and fitness.
Ultimately, these trends can’t be viewed in isolation, we’re currently living through economically turbulent times with major external global crises occurring. So, we’ll continue to keep our finger on the pulse on how the industry will react in the short term and the long-term implications.
