Five Key Trends Shaping the Insurance Industry in 2022
People often think about trends in technology and entertainment, but what about trends in insurance? Some of the same cultural trends are impacting the insurance industry. Here are the top trends that likely affect every insurance agency near you in California.
Niches help cultivate growth
The best business insurance policies are customized to fit specific market niches, from commercial construction firms to flower shops. Insurance agencies are working on designing policies for every business niche imaginable. Many modern businesses now base their models on unique products for narrowly-defined market segments.
Today many small businesses serve special communities of consumers who need customized solutions. The same applies to the insurance companies that can offer specialized coverage or target a certain population segment.
Since most businesses are now internet-oriented, either by having a website or operating on a connected network with a database, including cyber liability coverage in your insurance portfolio is necessary. Insurers are looking at ways to innovate protection for e-commerce sites and companies that must meet government compliance regarding privacy.
As cyberattacks continue to escalate, all businesses must build a strong defense against hackers, including getting adequate cyber liability insurance. This coverage pays for damage and litigation caused by a breach.
Emphasis on customer experience
Many insurance agents are shifting focus from customer growth to customer experience. That means they are spending more time engaging with customers and answering their questions about coverage. It’s clear that all consumers have alternatives at their fingertips on their smartphones in the digital age. So the insurance industry has become more competitive, as customer reviews now matter for all industries. The value of customer satisfaction is that it can lead to repeat business and significant word-of-mouth promotion.
Growth of competition among independent insurance agents
The arena of independent insurance agents is growing, creating more intense competition within the industry. Once a person learns how to sell insurance, it can translate into an independent career. Agents can operate from their homes and collect referrals through their websites and other online properties.
The property and casualty insurance market is experiencing a significant expansion of independent agents. The key has been customer support and developing relationships with various carriers. These agents operate as a referral service for a large pool of insurance partners. New players that can serve customers with faster response time can gain a competitive edge.
Carriers are increasingly investing in insurtech
Many new norms were established due to the pandemic in the early 2020s, leading to a deeper reliance on digital systems. The rapid rise of remote work and e-commerce have redefined how business is done, particularly for independent agents. So you can expect more new insurance companies to follow this model, allowing agents to work from their home offices.
From remote work came a new development called insurtech, which comprises technological innovations associated with the insurance industry. Insurance companies are now pouring investment money into developing the scope of insurtech, which includes smartphone apps and IoT devices.
Consult with Little & Sons Insurance Services
When you need an insurance agency near you in California, ensure it provides the services you need. If you would like to explore your insurance options or have questions about insurance, contact our team at Little & Sons Insurance Services today. We will be glad to help you.