Customer Experience, or CX for short, is a major focal point for most businesses and industries. This includes the property and casualty insurance industry. Providing an outstanding insurance customer experience not only helps companies keep their customers, it helps attract new ones through word of mouth. This is why it’s important to listen to new property and casualty insurance trends.
While it might feel as though you hear about new trends all the time, it’s worth paying attention to some. The property and casualty insurance industry has seen many changes over the past few years, especially on the digital side of things. Everything from IoT to Gig and Share economies mean changes aplenty.
Here are three property and casualty insurance trends to know right now.
Trend #1: Generational Change
At this point, there’s no way you haven’t heard of the generational battle between Baby Boomers and millennials. The 72+ million Boomers prefer things as they are, and dislike the changes millennials bring. Millennials, on the other hand, believe Boomers are afraid of change, etc.
Most of this is nonsense, but there are a few nuggets of truth. Many Boomers still prefer receiving paper documents, while some aren’t as technologically savvy as millennials. Millennials, on the other hand, prefer receiving and sending insurance correspondence digitally. Apps, SMS (or text messages) – basically anything that can be done by a mobile device, is the choice of most millennials.
This year, for the first time, millennials will outnumber Boomers1. Not to be outdone, Gen Xers – the generation wedged between Boomers and millennials, will outnumber Boomers by 2028. How does this stack up among property and casualty insurance trends? Your company will need to provide all options to create that great customer experience. Whether it’s manually filling out a claims report, or receiving one sent from an app, your company needs to be ready.
Trend #2: Investing in Digital Technology
In order to be ready, your company needs to invest in digital insurance technology. One of the biggest property and casualty trends is mobile apps that connect in real-time with a modern insurance correspondence system. Can your customers file a claim on your company’s mobile app? Can they take pictures of an accident, and send them to an agent? Is the customer promptly kept in the loop with real-time communications?
Something else to seriously consider is IoT, or the Internet of Things. IoT devices can connect to each other to monitor behavior. This, coupled with AI and big data analytics allows for more finely delineated insurable items and events, which gives you the ability to provide more competitive pricing.
These devices can range from a wearable (such as a smartwatch) to dongles that attach to your car to monitor your driving behaviors. Each of these can help your property and casualty insurance company create a well-defined policy, providing a world-class customer experience. But you need to make sure your company is up-to-date with its digital technology.
Trend #3: Rise of Gig and Share Economies
One of the popular property and casualty insurance trends gaining significant traction is anything involving Gig and Share economies. To give you a better understanding of each, let’s break it down.
- Gig economy: This is any on-demand service for hire, such as a personal shopper, personal planner, etc.
- Share economy: This is a P2P subset of the gig economy. The Share economy includes things such as Uber drivers, Airbnb, etc.
There was a time when all property and casualty insurance agents had to worry about was insuring a person’s health, house, or car. As implied above, times change. Customers are now looking for individual, sometimes short-term insurance policies. They want to feel protected, and in order to provide a memorable customer experience, you need to be able to handle not only these types of policies, but claims.