Top Insurance Trends to Watch in 2022

As we welcome the new year, now is the perfect opportunity to look into insurance trends and technologies that will shape the industry’s future. There’s no denying that the previous year brought plenty of challenges to the insurance industry. Still, we’ve learned some valuable lessons that allowed us to adapt and overcome.

Part of the new normal is being flexible and adaptive to one’s surroundings, and it’s the businesses that adapt are the ones that will survive the challenges ahead. With that in mind, let’s discuss the top insurance trends that every agency owner should look out for to ensure their business maintains relevance in 2022.

1. Digital claim payments

In this day and age, where accessibility is becoming increasingly important, clients have felt the need for contactless payment. While insurance companies have long offered digital solutions for premiums, we can’t say the same thing with disbursements. The global pandemic has taught us that outbound payment functionality is an absolute must for client convenience and satisfaction.

It’s expected that consumers will start to consider digital disbursement capabilities as part of their search for insurance agencies. Offering a full range of payment options is a trend that insurance companies should follow to remain competitive now and in the future.

2. Enhancing virtual client experiences

The insurance industry is based on connections and client relationships, and it’s no surprise that we’re seeing a massive trend in improving the virtual client experience. Personal interactions have shifted to digital platforms due to the pandemic, and the companies that offer solid web-based experiences are more likely to be preferred by consumers.

Nowadays, remote transactions are the new normal, and clients have grown accustomed to convenience. The key is to enhance the online experience and reimagine it to make remote transactions more compelling.

3. Partially distributed workforce

As the restrictions get a bit lax, we’ll likely see insurers return to the office. But that doesn’t mean that a fully distributed workforce is the move to make. We’ve seen how remote-friendly
technologies and processes have led to increased productivity from staff, which means a partially distributed workforce is the more innovative option.

Complexities brought about by the pandemic have shifted people’s thoughts on working set hours. According to a survey report from Mercer, 83% of the participants value a flexible working policy in terms of location and hours, duties, and more.
While the insurance industry isn’t ready to implement a whole workforce in 2022, we can still reap the benefits of remote working. Mobile solutions, automated billing systems, and project management software will be just as essential this year as it was last year.

4. The rise of insurtech

While insurtech isn’t new to the industry, the pandemic has accelerated the growth of digital solutions. Online claims management, automation software, AI chatbots, and other forms of technology have become a necessity rather than a luxury. Companies that embrace insurtech are in a position to serve their clients more efficiently and competitively.

Newer technologies will also allow insurance companies to manage complex customer data easily. It’s a crucial step towards a predict-and-prevent approach where the client and insurer routinely share sensitive information. As insurtech companies refine their technologies, we expect insurance agencies to adopt the evolving trends to stay on top of their competitors.

5. Employment opportunities

We’ve seen record-breaking unemployment numbers ever since the pandemic started. But thankfully, the insurance industry was able to absorb the disaster partly due to its ability to adapt to a remote work environment. Some insurance companies were able to keep most of their staff and plan to open up job opportunities in the future.

The question now is, can insurance companies address the talent gap? Only time will tell. The insurance industry is primed for growth thanks to its rapid adoption of technology and the growing insurance needs of consumers. Of course, to attract top-tier talent, the company must remain flexible with its work environment and showcase modern digital technologies to potential prospects.

6. Value proposition

One trend worth following in the insurance industry is the client’s search for value-based companies. Nowadays, clients focus on the company’s value proposition and will gravitate towards the best company they can find. Who can provide a superior client experience that goes beyond products and services? If you can answer this question confidently, your business is in an excellent position to land new clients.

7. Improve the trust factor

Trust is a crucial component in creating long-lasting client relationships, and it’s no surprise consumers want improved security in the way companies should handle their data. It’s not enough that your solutions meet governance requirements; you need to guarantee that your client’s information is well-secure.

One way to achieve this is by creating transparent data-driven ecosystems. Open-source protocols and shared databases like blockchain allow safe and secure file transfer between companies and industries. Improving the trust factor combines technology, assurance, and security. When you do this, you foster the growth of your relationship with your clients.

8. Building resiliency

The pandemic has taught us that resiliency is a must-have trait for any business. Insurers have long preached this message to their clients, but now is the perfect time to heed their advice. Agencies must prepare for unforeseen events by solidifying client partnerships and creating a work culture that enables next-generation experiences.

9. Personalized services

We always say that the insurance sector is a people-based business, and personalization plays a large part in strengthening client relationships. When you offer a personalized service, you stand out from your competitors. You give clients a reason to choose you. While technology has paved the way for convenient messaging, you need to level up the communication aspect of your business.

Clients look for more than just a transactional service. They want insurers to have a context of their situation. They want to feel understood and seek professional advice to navigate their financial journey better. By delivering a personal (and emphatic) service, your clients will feel more comfortable doing business with you.

10. Robotic Process Automation (RPA)

Efficiency is the name of the game when working in the insurance industry, and insurers will benefit significantly from using robotic process automation. RPA refers to software technology that mimics human interactions to incorporate with conventional process automation. With RPA, insurers can manage their time wisely and spend their hours on more important matters.

Robotic process automation can also streamline tasks like issuing payments, creating bills, providing quotations, and more. By leveraging the power of RPA, insurance companies can improve their operational efficiency optimize their costs.

11. Predictive analytics

The insurance industry has always relied on benchmarks for quoting insurance policies, but the numbers are only as good as the available data. In 2022, insurers and distribution partners are looking into predictive analysis to acquire competitive benchmark results. By utilizing the power of machine learning and data mining technology, insurers can make smarter decisions on workflow optimization, insurance recommendations, quoting, and more.

The most notable benefit of predictive analytics is sales and underwriting. When quoting, insurers can use machine learning algorithms to analyze historical data and determine which plan designs work best for specific industries and client groups. Predictive analytics removes some guesswork while facilitating the underwriting process, thus leading to more satisfied clients and improved overall service.

12. Environmental, social, and governance (ESG) factors

As the global population becomes increasingly aware of its surrounding environment, so do insurance companies. Sustainability is a top trend that we’ll see many insurance companies follow to win over clients and reduce their environmental footprint.

The insurance industry as a whole has done an excellent job of participating in the ESG movement, and many companies have already added environmental and governance factors as part of their underwriting process. Insurance companies who elevate their ESG standards will benefit from increased brand recognition and better staff support, recruitment, and media coverage.

In summary

By the looks of it, 2022 is prime to be a bounce-back year for the insurance industry. With the rapid adoption of insurtech and the industry’s position for growth, we’ll likely see insurance companies outperform their 2021 numbers. As long as they keep track of industry trends, companies can remain competitive and attract new clients.

Evaluating your financial performance is key to making your insurance agency more profitable. With accurate bookkeeping, you can make strategic decisions and put your business in the best place to succeed. If you need any help with professional bookkeeping services, feel free to fill out the form below and we’ll get back to you as soon as possible.