Insurance Trends to Prepare Your Team for in 2021
Insurance trends in 2021 will continue to be dominated by technological advances, which probably comes as a surprise to precisely no one.
Companies are increasingly using advanced analytics, the Internet of Things, and machine learning to fine-tune and customize risk profiles. Here are a few of the trends going on within the industry.
New products using technology
Digital technology now enables insurance companies to create products that fit individual needs rather than just a one-size-fits-all structure.
One example of this is hybrid policies that combine healthcare with life insurance. By bundling these two types of insurance, people can use the money that has accumulated in the life insurance policy to pay the costs for long-term care. If the money remains unused, when the policyholder dies, the money becomes available to their heirs.
The Growth of InsurTech
InsurTech companies, new firms that are using technological innovations to disrupt the insurance industry, are expanding rapidly in the areas of home, auto, and cyber insurance. These companies’ tremendous growth is putting pressure on more traditional firms to adopt new technologies or form ties with insurance businesses.
A move more toward services
In addition to their insurance products, insurance companies also offer services to customers. And this trend is likely to expand in the future.
For example, in addition to selling its life insurance policies, one company also offers investment services. Another example is the cybersecurity insurance arena. The insurance policies that companies offer are augmented with several educational and other information services to help firms avoid a cyberattack.
The trend of combining these services with insurance coverage will probably grow and expand to different types of insurance.
The use of big data
The ability to use technology to accumulate large stores of data and analyze it will drive innovation.
For example, auto insurers will be able to adjust their premiums based on the safety of a particular route that a driver takes. Using fitness tracker data, health insurance companies will offer lower premiums for those who exercise more frequently.
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