Growth Trends in the Insurance Industry
In this new decade, where will the insurance industry grow, and how could it change? The insurance industry is a reflection of the risks and changes in society as a whole. What are some of the trends that are changing the way insurance agencies work? Here are a few important ones.
Technology Will Help Insurance Jobs
According to Insurance Thought Leadership, while insurance technologies haven't always helped people in the industry make quicker and better decisions, over the next few years "the industry will see an increase in “intelligent” process automation (IPA) that is more robust and combines the bot with learning, evaluative and decision-making capabilities for greater impact."
You'll also be able to use technologies to better use the data that already exists within your agency. Using AI and content mining, you can turn items such as policy, risk, and loss reports into information that can help you better understand your business and your clients.
Staffing Challenges May Hinder Organizational Development
While technology will be an ally for you in this new decade, you also need talented people. Only 2 percent of university graduates planned to work in insurance, according to the Board of Innovation. More graduates are seeking out careers in areas such as finance and technology, rather than insurance. Your insurance agency will need to promote itself as a progressive and innovative employer, ready to provide new challenges to a group of fresh graduates.
External Conditions Will Continue to Be Volatile
These are interesting times to be in the insurance industry. With trends such as more fires and more severe fires, more flooding, and more drought hitting the United States, you will be constantly challenged to adapt and consider how and when people can be insured. You will also be challenged to keep up with laws related to insurance coverage.
For instance, according to the New York Times, in 2019 California put into place "a one-year moratorium preventing insurers from dropping customers in or alongside ZIP codes struck by recent wildfires." This has profound impacts on the insurance industry, and changes like this could impact your decision-making and your agency's bottom line.
Customer Service and Marketing Expectations Will Increase
Today, customer service and marketing expectations are, in a sense, going backward. Even if much of what you do occurs online, there's a renewed focus on personal customer service. In today's world, this is often facilitated by technology. You will use technology to help determine the specific needs of a client and market to those specific needs, rather than sending out more general marketing messages.
There's also an expectation of all hours service and service that is extremely quick. You'll find yourself using technological tools such as bots and FAQs to support clients in your off-hours, especially if you're a smaller insurance agency and can't be on the phones 24 hours a day. Digital customer service will also become more natural and responsive to what people say and write, making it easier for digital assistants to step into your role when you're not available.
Are you ready for a stronger future? At American Agents Alliance, we help your independent insurance agency get where you want to go. With numerous membership benefits such as a conference, education, and networking opportunities, we are a resource for your insurance business. Contact us today to become a member.