As we start to say goodbye to 2021, our thoughts turn to a restful holiday season to end a busy year. Reflect on your successes and lessons learned from the last 12 months. Then think ahead to 2022. Consider what may lie ahead with our view of insurance industry trends and predictions for the next year.
Read on to learn more about what we may expect in the risk management and insurance field in 2022. And as you plan for the next year, is expanding your network and opportunities for industry education high on your priority list? If so, a membership with the American Agents Alliance is perfect for you.
2022 Insurance Industry Trends and Predictions
The next year brings exciting challenges and innovations to the insurance and risk management industry.
Innovations in technology continue
Insurtech isn’t going away. Just the opposite — technology will continue to change our industry. Insurance challenges are ripe for innovative solutions. The last decade of advancements has shown this. 2022 will bring more in the way of insurtech solutions. Some technology is designed to predict risk more accurately. Others reduce expenses or lower claims frequency and severity.
But along with this new technology comes the need for humans to interpret the models. Insurance and risk management will become even more a blend of human expertise and machine knowledge. As Evan Greenberg, CEO of Chubb, recently pointed out at Insurtech Connect Vegas 2021, “going digital is not just about the technology.” We need people to work with technology for the best results.
Hybrid models are here to stay
The way we work has changed. People no longer need to be in the same location as each other to perform well. The pandemic taught us to be resourceful and find ways to do business virtually — and those same skills will carry us into 2022.
Expect to see employers across the risk management and insurance industry continue to find innovative ways to engage employees and customers virtually, or at least in a hybrid way. Events and conferences are likely to continue hosting hybrid events. Working differently is the new normal.
Consumers expect more from their agents and brokers
Insurance customers have access to more information and choices than ever before. Digital agencies, carriers, and policies have changed the way people shop for insurance. And customers can find new services quickly if they are unsatisfied.
All of this means agents and brokers have more competition. It will become even more critical in 2022 and beyond to have a competitive advantage.
As an independent agent or broker, joining a strong membership-driven organization like the American Agents Alliance can be your differentiator. Some of your member benefits include ongoing industry education and exclusive networking opportunities. Give yourself every advantage possible in this competitive market by becoming a member today.
The global insurance market will grow
A significant global insurance industry trend predicted for 2022 is the continued growth of the market. Insurance premiums are expected to grow 3.3% in 2022 with increases in both the life and non-life sectors. Some consumers are feeling more risk-averse after the pandemic. This can lead to more insurance purchases.
This makes it a good time for insurance agents and brokers to work with their policyholders. Educate your clients on their coverage and any gaps. Help them learn what additional coverage they may need. Focus on being proactive. As the economy recovers after pandemic-related slowdowns we may start to see better insurance pricing — driving more consumers to purchase additional limits or policies.
Cybersecurity issues will continue
Cyberattacks have been on the rise and it looks like the trend will continue in 2022. Remote work and hybrid work arrangements have contributed to some of the growth. Criminals could exploit weaknesses in any part of your system. Small businesses have become targets because of potential security gaps, like in their Wi-Fi security.
Review your cyber insurance coverage to learn more about what’s covered under your policy. If you don’t have coverage yet, talk with your agent or broker. You may want to add coverage for things like data breaches, malware, or ransomware attacks.
Take time to educate your staff often. Different types of phishing attempts pop up often and hackers are creative! Invest in your IT security. Train your employees about cybersecurity and good housekeeping practices.
Hiring new employees may be challenging
People will have more job opportunities in 2022. With increased government spending and the goods and services markets recovering post-pandemic, employees will have more choices and can move freely between employers. This means your agency has to attract talented people and provide them incentives to stay.
Employers who adapt and change the ways they recruit, hire, and manage people will be more successful during the post “Great Resignation” times. You may have to get creative or change your usual style. Think about how you can offer your employees a better experience — and ask them that same question.
Grow Your Agency in 2022
Consider these insurance industry trends as you plan for a successful 2022. Knowing how the industry is likely to evolve lets you stay ahead of the curve. Grow your agency by continuing to educate yourself and your staff and keeping current on changing innovations.
The American Agents Alliance will help you every step of the way. A few of our exciting member benefits to set you up for success in 2022 include:
- Valuable discounts on agency management systems and services
- Access to exclusive E&O insurance
- Preferred market access for our California-based producers
- Special discounts on agency management systems
Become a member today! Happy New Year!