As an insurance agent, you know how important it is to be prepared for the challenges to come. Here's what you need to know.
As we head into 2022, it's time to look to the future and prepare ourselves for the year to come. Although it's impossible to tell what 2022 will bring, trends in the insurance industry can help us guess what awaits us.
It's an exciting and also challenging time in the insurance industry. Today, many agents face issues surrounding new technology and software, supply shortages, effects of climate change, and more. As an agent, you know how important it is to be prepared. Knowing the difficulties that you'll be facing can help you make a plan - and weather the challenges you're about to face.
Modern Technology and Shifting Consumer Expectations
In a world of apps, smartphones, and fast online transactions, consumer expectations are higher than ever. Modern software has increased consumer access to insurance, and many consumers now expect to work directly with their insurance provider.
Agents who wish to remain relevant to consumers must raise their level of customer service and availability to compete with software that is ready at consumers' fingertips. Good customer service can win over consumers, but agents must provide that customer service in order to keep their clients.
This also means that agents must learn to use the new technology that will give them an edge and allow them to continue to provide superior customer service to clients. Ultimately, clients will come to agents who can get the job done!
Challenges with the New On-Demand Economy
The on-demand economy - like rideshare and homestay services - is still very new. Consumers earning money through these services must carry insurance to operate, and will predictably face challenges that are very specific to this new industry.
It's likely that many questions and issues that arrive in this new industry will be resolved on a case-by-case basis, as little precedent exists to answer insurance questions that arise. As agents become more familiar with and experienced in this industry, they'll develop strategies to manage situations that commonly arise.
Climate Change and Catastrophic Events
Climate change is having a real effect on insurance. Catastrophic environmental events - resulting in claims made en masse - are becoming almost commonplace. As natural disasters become more severe, and new natural disasters arise in this changing world, agents must adapt and anticipate that month could bring a new problem.
Flexibility is a must in this brave new world. Agents must be forward-thinking and help their clients prepare for unanticipated events. Agents must also be available to clients facing these disasters.
Supply Chain Issues Increasing Loss Payments
The supply chain has been famously disrupted in the last two years. From medical supplies to microchips, there seem to be very few industries that haven't been dramatically impacted by this problem. These disruptions make waves that continue to be felt far into the future. Disruptions that occur early in the supply chain can be felt months and even years later. Supply chain shortages can eventually result in an increase in insurance claims and loss payments, which could eventually result in rising premiums.
Be Prepared. Join the Right Insurance Cluster for Your Insurance Business.
You know how competitive the insurance industry is. Join an insurance cluster that will give you an edge and help you attract more clients. Joining Voldico gives you access to a multitude of carriers, competitive commission structures, attractive profit sharing, and more. Voldico's network of insurance agents is always available.
When you're a member, you've got a way to connect with other agencies facing the same challenges that you're facing. Learn from your peers and turn your agency into a well-oiled machine, ready for the future. Contact Voldico today.