Insurance Trends 2021: What Lies Ahead for the Insurance Industry
Taylor Pettis December 22nd, 2020
The insurance industry has so much intersectionality both with other businesses and the way we live our personal lives. It’s a virtual necessity in this day in age for everyone to have insurance of some variety.
The year 2020 has been one for the ages, and as we close the books on the year, look ahead and familiarize yourself with what the new year holds for insurance. Discover the latest insurance trends for 2021!
1. More Insurance Companies Are Using Codeless Platforms
There was a time that people in almost any industry were encouraged to learn to code. It never hurts to pick up new skills, but coding isn’t as pressing a need for people in the insurance industry in 2021.
The reason for this is that digital technology has evolved to include several codeless platforms that have established themselves as insurance trendsetters.
People with no background in any particular coding language can set up their website, and any other visual platforms that they need. This frees up resources and allows companies to hit the ground running with whatever platforms they are pushing to the market.
You can even construct mobile apps without having to outsource the work to experts. This is excellent for smaller shops that might not have the same budget or resources as larger companies.
2. Artificial Intelligence (AI) Is Shaping The Insurance Industry
Artificial Intelligence (AI) is here to stay and it will be a key trend in 2021. You can look no further than the insurance industry as proof of this.
Right now, companies are putting Artificial Intelligence to use for things like handling claims, drawing up policies, managing data, and running comprehensive analysis that helps with decision making. Perhaps the most common use of artificial intelligence in the insurance industry is the chatbot.
Today’s chatbots allow customers to make payments, handle changes to their policies, ask general questions about the company, and so much more.
This not only frees up overhead costs, but it also frees employees to manage their time better and, in many ways, helps customers quickly and more specifically. Based on these benefits, 2021 will see even more AI involvement in the insurance industry.
Discover the Top Trends in AI
3. Companies Are Creating Products Tailored To Customer Needs
2020 has proven the value of the customer-centric approach in the insurance industry. In 2021, the trend is shifting from the one-size-fits-all policy to creating policies for customers that are more customizable and tailor-made to what they actually need.
Customers appreciate this level of flexibility, particularly millennials, who are now older and making decisions for households. Millennials and today’s consumer in general appreciates a certain level of flexibility.
The end result is that the premiums are generally more cost-effective because customers are only paying for what they need. Because a lot of companies are moving in this direction, expect this change to take off like wildfire, since customers today also have more options than ever.
Find out more about Customer Experience in Insurance
4. It’s easier For People To Find Quotes And Services Quickly
Time is money, and today’s consumer wants to get up and running with a policy as quickly as reasonably possible. Today, it’s easier to get speedy online quotes, enroll in a policy, and get access to your documents.
This is a reflection of the way that business is done in 2021, and that it no longer makes sense to spend hours completing a task that can be done just as thoroughly in a fraction of the time.
5. The Industry Is Recovering From Covid-19
Both hospitals and the insurance industry have taken a beating during the COVID-19 pandemic. As the world pushes to recover in 2021, so too will the insurance industry.
Throughout the course of the year 2020, mortality rates were high, the economy took a dip, businesses took huge losses, and customers filed high volumes of insurance claims. Expect to see a lot of restructuring in 2021, but still expect it to be a rough year for the industry.
The containment of the COVID-19 virus can be unpredictable, and it is an issue that we will be dealing with in some capacity for the next several years. The insurance industry will be glad to bounce back from the effects, but it will only be in the early stages of recovery mode in 2021.
Find out more about Insurance Policy Correspondence
6. Internet Of Things (IOT) Is Growing in Use
Right now, Internet of Things (IoT) is revolutionizing a number of industries, and the insurance business is no different. People are accessing the internet on so many devices, such as wearables, appliances, and other devices. This gives insurance companies more ways to reach their customers.
You can now load insurance apps from the comfort of your vehicle dashboard that can get someone out to the scene of an accident when you are filing a claim. Drones are being dispatched to assess initial damages for natural disaster insurance claims. The sky is the limit with the Internet of Things and we are just getting started.
7. Remote Service Is Here To Stay
Don’t think that remote work is a temporary thing brought about by the pandemic. Now that people and companies are growing accustomed to doing business in this way, the insurance industry and others will keep many of these practices in 2021 and beyond.
It’s more common than ever for people to sign contracts for their policy remotely without actually putting pen to paper. Virtual consultations with video chat are also incredibly commonplace.
This is the way of doing business now in insurance and other industries.
Find out more about Insurance Claims Correspondence Software
Embrace The Trends In Insurance For 2021 With a CCM Software
2020 has introduced new technologies, business practices focused on remote work, and government regulations— all things that directly impact the insurance industry. To keep up with the trends coming in 2021, insurance providers need solid customer communications management solutions.
These platforms are bringing together leading technologies to enhance business communications processes with a modern standard of efficiency, even optimizing them for regulatory compliance and industry best practices.
Discover how CCM platforms enable insurance companies to thrive:
Believe it or not, 62% of customers prefer interacting with their service providers through an app, or making payments by phone (a big number, considering most of those are younger customers, those with the greatest lifetime valu
Omnichannel communications via phone, email, and print, with automated support, have proven effective with early adopters of the latest communication technology. Larger legacy firms have already made significant strides toward increased print and digital presence with their customers.
Internal processes and structures are being streamlined for greater efficiency and revenue maximization. In most places, this looks a lot like “divide-and-conquer,” or workloads being segmented and distributed to different specialties (versus individuals multitasking).
CCM solutions for insurance facilitate both front and backend activity for digital and automatic communication, delivering a clear, stepwise paradigm for your IT staff, and an easy WYSIWYG interface for non-technical users.
New technological developments in the insurance industry give companies the opportunity to collect enormous amounts of new customer data through the Internet of Things (IoT) — we see a growing number of ways to assess the preferences of insurance customers and their level of interaction with the various communication channels.
Your fields will be populated with a wealth of new information from the IoT. CCM solutions will not only clean up data, but from it, it will generate interactive documents including bar graphs, scatterplots, and charts to find out where the average customer lies. Based on this data, it will enable insurers to personalize customer communications and reach out to them when and how it suits them best.
Fallout from election cycles will always have some bearing on your customer interaction. The insurance industry is known to be heavily regulated, and standards can be more volatile when the government is busy. You need to ensure the language in your forms, policyholder documents, contracts, and notices adheres to standards that change year to year.
CCM software for insurance provides features for certain users to review and approve content before moving on to the next stage of creation. It facilitates a wholly standardized correspondence with customers, eliminating whatever anxiety was once associated with these details. You can be sure you’re releasing the right documents, with the right content, at the right times and all in line with the customer’s preferences.
A study conducted by Collinson has revealed that 63% of customers are open to communication with their insurance providers and 73% are interested in receiving products and benefits that are tailored to their needs. The study also relayed that only 43% of customers reported they were receiving regular communications from their insurance companies. The industry is adapting in response, with models of automation and efficiency in the digital age.
Today, insurance companies can be available 24/7 for their customers. CCM software enables you to trigger workflows based on the entirety of customer data it stores and cleans, promptly creating and delivering thousands of communications at a time, by various channels. Moreover, customer journey mapping creates a solid basis for personalized offers for clients.
Look Into 2021 Insurance Trends
MHC specializes in customer communication, document management, and so much more. Take time to contact us today!