4 things moving and shaking the insurance industry

There’s always something happening in the independent distribution channel.

Moving and shaking in the insurance industry

In honor of National Insurance Day, here’s a snapshot of topics that are top of mind for the independent insurance channel and the clients it serves.

Climate is changing the insurance marketplace

“Climate change is creating more and more intense, extreme events that cause significant damage and often sets off cascading hazards like intense drought, followed by devastating wildfires, followed by dangerous flooding and mudslides,” said Dr. Rick Spinrad, National Oceanic and Atmospheric Administration (NOAA) administrator.

This increase in disasters and their price tags challenges the entire industry. Today, independent agencies are informing clients about potential coverage gaps and property risk assessments. Some agencies are tasked with finding replacement coverage when insurers pull area coverage altogether. 

Everyone will be affected—consumers, agencies, and carriers.

“Climate change is injecting uncertainty into an industry built on risk prediction and has created “a crisis of confidence around the ability to predict loss.”
Eric Andersen
Aon PLC President

Giving back is an insurance industry core value

At its core, the insurance industry has a big heart. Independent insurance agencies are well known for their support of their communities. Agency employees step up when there’s a crisis, a celebration, or a little league team that needs a sponsor.

According to the Big “I,” 96% of agents surveyed said they gave to charity in the last year, compared to 75% of other small businesses.

Giving is in our industry’s DNA. Through the Insurance Industry Charitable Foundation (IICF), insurance professionals “unite the collective strengths of the insurance industry to help communities and enrich lives through grants, volunteer service, and leadership. “

Every year at Accelerate, conference attendees support local charities at NetVU’s annual Day of Caring, sponsored by Cincinnati Insurance. In May, insurance professionals supported Caritas of Austin, an organization committed to ending homelessness in the city.

"The Day of Caring is such a great event as it gives all of us an opportunity to give back. It helps us remember what we have along with a gentle reminder to be grateful for the things we take for granted. I truly believe we get back what we give during this journey we call life. Our industry is built on relationships and people. What better way to represent our industry and give back to the community who is hosting Accelerate! "
Joe Clabaugh, Service Manager
The Cincinnati Insurance Company

Embedded insurance is showing up everywhere

Few people want to buy insurance. But they do want to buy houses, cars, smartphones, and airline tickets. In a consumer market, offering them insurance at the point of purchase makes sense. This makes adding insurance an easy and in-the-moment decision—immediate peace of mind at the point of sale.

There is enormous potential here for the insurance industry. There are opportunities for the development of nimble, innovative insurance products adapted specifically for a particular product. Cross-industry partnerships will emerge bringing insurance and manufacturing, travel, healthcare, and hospitality together. The introduction of a new group of insurance customers that come from embedded insurance makes this new market an exciting place to be.

According to the Embedded Insurance Report by Cover Genius:

  • $70 billion in embedded insurance premiums by 2030
  • 49% of consumers would buy embedded insurance for convenience
  • 34% of consumers would buy embedded insurance to save money

“Embedded insurance has seen as a transformative trend in insurance distribution that is offering a new generation of insurance where people didn’t buy it before.”

Sebastien Bert, head of U.S. strategic partnerships
Swiss Re Group

Insurance clients want self-service technology

We know that talking to a human on a customer service call is important.

But it’s also important for customers to have touch-of-a-button access to their insurance products and services. People want to take care of business on their schedule and on the go.

In fact, 81% of customers attempt to self-serve a problem or issue before reaching out to a service representative.

In a recent article about self-service options, Hubspot reports:

  • 77% of customers view brands more positively if they provide self-service support options
  • 73% of customers want the ability to solve product or service issues on their own

There’s never a dull moment in the insurance distribution channel. Exciting innovations are constant as the entire industry discovers new ways to provide excellent service. We can’t wait to see what the next year brings.