The coronavirus pandemic has impacted almost every aspect of our lives. Daily activities like grocery shopping, chatting with friends, and traveling to and from work have all changed to incorporate some aspect of uncertainty. With so many resources out there claiming one thing or another, how can you pinpoint exactly how your industry is changing and what trends to consider? Is there more to talk about besides an increased interest in life insurance?
Possible growth of cyber risks due to working remotely
As you’ve probably already guessed, almost everyone is conducting their business remotely. That means the number of agents using a form of video conferencing is huge. This new reality, unfortunately, presents a new risk: cyberattacks. Many agencies have been working to secure their systems against cybercrime, but more measures should be taken to ensure that your employees can connect via secure, remote networks.
Extended payment grace periods
A number of insurance companies like Travelers and Progressive are offering financial assistance to their customers. These can come in the form of a percentage rebate or an extended non-cancellation period. This comes as a relief effort to aid the Americans suffering from financial insecurities due to job fall out and other unplanned changes. California enforced an order that all insurance companies at least have to offer a 60-day grace period for payments to insureds (LexisNexis).
Predictions for the 2020 hurricane season
It is still early to give a definitive answer, but early predictions show weak western winds from El Niño could signify more storms for this year. One of the key ingredients to making a tropical storm is the lowered force of upper-level winds in the atmosphere. When wind levels are low, it creates an area of pressure build-up which eventually can cause a tropical system (BBC). Keep this information in mind as you plan the rest of your year; it may serve to focus on offering hurricane coverage to your clients!
Digital technologies are changing the industry
The insurance industry is quickly undergoing a digital transformation, enabled by intelligence like machine learning. More automating technologies have made it easier to write new business and manage data, giving agents improved access to their clients, and making servicing their needs simpler. As Sumit Taneja and Rupesh Malik stated in their propertyandcasualty360.com article, the industry’s continued adoption of new technology will transform insurance as we know it. Independent insurance agents will move from a state of “detect and repair” to “predict and prevent,” allowing the industry as a whole to become more proactive.
Obviously, this list is a combination of highlights, with sections designated to topics of most interest. It is important to understand how your agency plays a role in the development and progression of the insurance industry, and how these changes can impact the way you do business. Keep these predictions in mind as you navigate your appetites and consider looking into including more automation in your agency. Check out our blog about automation for more info!