Industry Trends for 2022 and Beyond

Whilst 2021 was a year of fighting against the disruption that coronavirus caused, 2022 is shaping up to be a year of immense change for many insurance brokers, with both customer demands and technological advances making waves across the industry.

So, what does this mean for brokers? And how can they adapt to ensure they remain ahead of the curve? Here are some key ways in which brokers can adapt to changing industry and customer landscapes:

1. Diversify your offering

In order to remain relevant in a rapidly changing industry, it's important for brokers to diversify their offerings. This could mean anything from expanding the types of insurance products you offer to exploring new markets and territories.

2. Make use of technology

Technology is increasingly becoming a key part of the insurance landscape, with customers now expecting a more seamless and interactive experience. As such, brokers need to make use of technology in order to remain competitive. This could involve anything from using chatbots and AI to improve customer service to investing in digital marketing tools.

3. Build strong relationships

In a rapidly changing landscape, it's more important than ever for brokers to build strong relationships with both customers and insurers . This could involve anything from offering bespoke services to maintaining regular contact.

4. Review your processes

As the industry changes, it's important for brokers to review their processes and procedures on a regular basis. This could involve anything from re-evaluating your customer acquisition strategy to streamlining your claims process.

Time for a tech update?

Digital transformation in insurance is something that's been on the cards for a while, but the pandemic has pushed it to the forefront of many insurers' minds.

Many customers are now expecting a more digital-first approach from their insurer, which means that brokers need to make sure they're up to speed with the latest technology. This could involve anything from using chatbots and AI to improve customer service to investing in digital marketing tools.

Insuretech is also becoming an increasingly important part of the insurance landscape, with startups and Insurtech companies shaking up the industry. Brokers need to be aware of these companies and their offerings in order to remain competitive.

Don't forget the personal touch

Whilst technology is becoming increasingly important, it's also important for brokers to remember the personal touch. In a rapidly changing landscape, customers are likely to appreciate the human element of insurance, so it's important to make sure that your team is providing a personal service.

What's next for insurance?

The insurance industry is constantly evolving, so it's important for brokers to stay up-to-date with the latest trends. Here are some of the key trends that are set to shape the insurance landscape in the coming years:

1. Sustainability

An increasing number of customers are looking for sustainable insurance options, so it's important for brokers to be aware of this trend. This could involve anything from offering green insurance products to promoting sustainable initiatives within your business.

2. The rise of Insurtech

Insurtech is expected to continue its rise in popularity, therefore it's critical for brokers to stay up to date on the newest startups and services. This might range from using digital technologies to streamline the insurance application process to collaborating with Insurtech firms.

3. The sharing economy

The sharing economy is growing in popularity, so brokers should keep it front of mind. It might have wide-ranging implications for insurance. Consider offering peer-to-peer insurance products, or perhaps rethink your business model to accommodate the sharing economy.

4. Big data

Another element to think about is the use of big data. There are a number of ways to capitalise on this, from using data to improve customer service to using data to underwrite policies.

5. Connected devices

As more and more devices become connected, it's important for brokers to be aware of the implications this has for insurance. Maybe it's time to think about offering pay-as-you-go insurance products, or discounts for customers who use connected devices.

Tech-based insurance requests increase

We're also finding an increase in people looking for cyber insurance. The pandemic has forced many businesses to move online, which has left them vulnerable to cyber attacks. Businesses, both large and small, will be looking at ways to protect their data from thieves. One of the largest cyber crimes in recent years was the Equifax hack, which exposed the data of over 143 million people.

Cyber insurance can help businesses recover from a cyber attack, and it's something that all businesses should consider. Brokers need to be up to speed on the latest trends in cyber insurance so that they can advise their clients properly.

Similarly, technological advances such as the uptake in driverless vehicles means that general car and motor trade insurance might not be up to snuff. If you haven't already, start investigating ways to insure driverless vehicles so that you can be at the forefront of this trend. The specifics of driverless cars might mean that you need to partner with a specialist insurer, so it's important to start building those relationships now.

Keep up with the latest trends

There are a number of other elements that brokers should keep in mind when looking to the future. These include:

• The impact of climate change on insurance
• The changing demographics of the insured population
• The rise of alternative risk transfer products
• The increasing regulation of the insurance industry.

Each of these trends is likely to have a significant impact on the insurance landscape, so it's important for brokers to stay abreast of them. By doing so, you'll be able to adapt your business to meet the changing needs of your clients.

The insurance industry is constantly evolving, so it's important for brokers to stay up-to-date with the latest trends. This could involve anything from attending industry events to reading trade publications. By keeping up with the latest developments, you'll be able to provide your customers with the best possible service.

Finding continued success as a broker is down to always being one step ahead of the trends. What’s popular today could be gone tomorrow, so it’s important to always be on the lookout for what’s next. If you can do that, you’ll be in a great position to find success in the years to come.