Ok, I’ll say it: We are ALL glad 2020 is almost over! This year threw a lot at small businesses, and some of us are still trying to put our heads on straight. To get yourself a little more prepared for 2021, here are some trends to watch in the insurance industry.
- Data-driven insurance
This probably doesn’t sound very new to you since insurance has always been a data-driven market, but new technology means that insurers can now take advantage of big data. Through the use of management systems and marketing automations, independent agents are able to learn more about clients. This means that it will be easier for insurers to build relationships with potential customers as well as create customize policies. Insurers will also be able to decrease risk and improve the “accuracy of their calculations by considering more metrics during their underwriting process.” (Artificial.io)
- More tailored products
Because of the crazy amount of available data and a change in the demographic majority, insurance products are becoming more flexible. Millennials are currently the largest generation, and businesses are rushing to change their marketing strategies to appeal to this demographic’s taste.
As we explain in an earlier blog (Read it here!), Millennials expect more personalized products and customer engagement. If you’re looking to win over this demographic, take a look at their devices! Using information from fitness trackers and car telematics is a simple way to tailor your products so your younger clients and prospects can feel like they’re getting the best value for their needs.
- Automation and machine learning
In the past year, we’ve seen a massive push towards AI and machine learning technologies, and now many aspects of insurance can be automated! If you are looking into incorporating more automations into your business practices, now is the time to do it. With platforms like Hootsuite that manage your social media posts, independent agents will have a lot more free time to focus on writing new business and pursuing prospects.
- Cybersecurity is becoming popular
One of the biggest concerns with this shift to digitalizing everything is cybersecurity. More and more businesses are recognizing the severity of cyber-attacks, and cybersecurity insurance is becoming more popular (Cybersecurity-insiders.com). Since the majority of people now work from home and the number of cyber-attacks and hackers is going up, companies are looking to beef up their security. It could be worth your while to incorporate cybersecurity insurance into more client conversations.
It’s no surprise that all of these trends are driven by technology; most businesses had to adopt new tech in order to survive the pandemic. The 2021 predictions show a definite switch, however, in how agency owners view these advancements; automations and AI integrations are more than add-ons, they are a necessity. Now companies can utilizing these resources to improve their selling models. Think about it, you have access to more customer data than ever before, and you can use it to provide a better customer experience while saving yourself time. Keep these trends in mind when creating your selling strategy for 2021.
This article is made available by ASNOA for educational purposes only as well as to give you general information and a general understanding of the law. It does not aim to provide specific legal advice. By using this blog, you understand there is no attorney-client relationship between you and ASNOA. We strongly recommend consulting a lawyer for individual needs of your business.