Insurance companies are not as popular as they used to be for businesses. Due to the evolution of the risk profession, more and more businesses are using resilience planning and internal controls to avert and harness risks that would otherwise not be taken, transferred to a third party or covered with Youi Insurance. However, due to the past few months, we have seen an uprise in insurance companies being given business by all kinds of organizations. It’s not just due to the need to have a backup against your disaster recovery or business continuity plan, but to integrate insurance into them. This and more in the way of trends is happening in the insurance field.
New economies
More and more countries are increasing their middle class to the dominant class. This has meant that insurance companies are getting a wave of new customers from around the world, who may want to insure their homes as first-time buyers, insure their car or perhaps, their business.
However, in these new economies, you have to offer non-insurance products too for the simple reason that not many people will want to buy insurance on it’s own. 62% of insurance companies are considering expanding their product line outside of insurance to things like resilience planning tips and manuals to businesses to lower their inherent risks. Things such as staff training on preventing issues such as fraud, hacking, and data loss are also being offered. It’s quickly turning insurance companies into assurance companies, which is surprisingly more important to businesses than actual insurance.
A different path(s)
As you may be able to notice where this first trend is going to lead, countries like China and India are being seen as the latest and hottest field for selling insurance. As both countries continue to build skyscrapers, selling construction insurance seems to be the best thing since sliced bread. Up to 51% of the insurance industry say that China will be the fastest-growing field for insurance in the next 10 years. That is just over half of the world’s insurance companies saying that one country is likely to be the majority of their business.
And, up to 33% of value will arrive from totally brand new propositions. This could be battery technology brands wanting to insure their inventory stockpiles. It could be solar panels brands wanting to insure their fields and logistics. It could also be electric car companies, wanting to buy insurance to protect them from liability of customers getting hurt due to lithium-ion contact during a crash.
Machine learning
Insurance is a very paperwork-heavy industry where lots of menial tasks have to be done by employees. But if artificial machines and their ability to learn quickly could offset this workload, it would change the game. That’s why companies like Artificial are introducing software that has machine learning built-in, allowing insurance companies to give quicker quotes and use complex pricing models to assess the risks they could be taking on. And that’s where the magic is, being able to quantify risks and opportunities, without the need to rely on human brains that may take a few days to figure out the worth of a prospect.
Machine learning in this regard can also produce better competitive pricing models for a company’s products, making them potentially more attractive than before. Not to mention, you could also enhance existing pricing models.
More negotiating
At the very beginning, we explained how businesses are using their risk functions to calculate and produce business continuity and disaster recovery plans. This has meant fewer businesses see the need to buy insurance for all but the most serious risks. Principal risks will always be of concern, but even still, it will take some persuading.
This has meant insurance companies have to be ready to negotiate if they want to attract their customers back. It’s time to admit, insurance companies do not hold the golden key to a business’ salvation, should something like a fire or economic crash occur. So, train your employees to negotiate better, produce a culture that can accept that insurance isn’t as important as it used to be, but that if it’s targeted in the right way it can still be valuable to brands.
For any insurance company, these trends will be eyebrow-raising in the effect that, it will bring pause for thought. If you own an insurance company, have you noticed any of these trends? Will you be implementing these trends or have you already begun to do so?
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