In the insurance industry, trends are constantly shifting. As technology advances and customer demands change, it is essential for insurance agencies to stay up to date on the latest information and trends that will shape the market in 2023. From increased reliance on technology to embedded insurance products and more, read about five of the most significant insurance industry trends you should be prepared for in 2023.
More Reliance on Technology
Technology has become a significant part of how we all do business today. This trend is only expected to become more prominent as time goes on. By 2023, 77% of customers will prefer to submit claims via mobile phone. Additionally, 80% would switch carriers due to the lack of a user-friendly digital interface. Understanding how your agency can best leverage technology moving forward is essential for success in the coming years.
Usage-Based Insurance
Usage-based insurance (UBI) has been growing steadily over the last few years and is expected to continue expanding as time goes on. UBI monitors driving behavior through telematics devices or mobile apps and then charges rates based on individual driving patterns instead of traditional risk profiles. This type of personalized pricing could become much more common by 2023, so agents must understand how they can use this data when determining rates for customers.
Speed-to-Market
In an increasingly competitive market, speed-to-market will become even more critical than ever before. Agencies need to be able to quickly develop new products that meet customer needs without compromising quality or accuracy. If your agency cannot keep up with these demands, it could be at risk of losing out on potential customers and revenue opportunities by 2023.
Embedded Insurance
Embedded insurance “meets customers where they are,” which means it can be purchased during the buying process for another product, such as a car or home loan. This type of insurance takes center stage in 2023 as companies look for ways to simplify their offerings while offering comprehensive coverage solutions that meet consumer demands. Agents need to have an understanding of embedded products so they can better advise clients looking for this type of insurance solution in the future.
Mid-Sized Insurers Will Be Pressured
Big companies will continue taking market share from mid-sized companies. In contrast, small companies target smaller niche customers who are looking for specialized coverage solutions not offered by larger providers. Mid-sized insurers will need to focus their efforts on differentiating their services if they want to remain competitive in 2023 and beyond!
The future looks bright for those who stay ahead of the curve regarding insurance industry trends in 2023! With technologies such as usage-based insurance gaining traction, embedded products becoming more popular, and speed-to-market becoming increasingly critical, now is the time to make sure your agency is prepared! Staying informed about what’s happening in this rapidly changing landscape can help ensure your business remains competitive well into the future!