Top 5 Things Insurance Companies Need to Consider in 2020
These issues remain on the minds of insurance firms in 2020, even as the new year brings with it a host of other considerations, trends, and concerns. For insurance agents and carriers, staying on top of the latest industry news is critical to staying competitive and successful.
The Top 5 Considerations for Insurers in 2020
1. Insurance Technologies
It should come as no surprise that emerging technologies top the list of insurance considerations for 2020. Just last year, investments in insure tech reached a staggering $4.4 billion. Many insurance firms and agents have held onto certain legacy systems that are less effective or entirely antiquated.
Advancements in technology are necessary not just to update older systems, but are integral for reaching out to new generations of customers and the next wave of insurance professionals. In order to attract vital human capital, insurance businesses must make sure their systems fit the habits and skillset of younger workers.
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2. Customer Service
Unfortunately, people have long associated the insurance industry with underwhelming customer service. In one study, less than half of insurance customers received a satisfactory response to a service inquiry. Looking at some of the best practices to improve customer service, one of the most logical initiatives is the investment in technologies that foster a better relationship between customer and insurer.
Insurance companies can do this by collecting and leveraging data to connect with customers in a more personalized way. Communication technology, such as chatbots or an IVR for incoming calls, can also create a more satisfying experience for customers.
3. Mobile Phone Users
Connecting with customers through digital means is even more important for insurance businesses as we enter 2020—and mobile phones are a significant part of that push. One way insurance companies can get themselves in a better position is by focusing efforts on creating an exceptional mobile application. Customers often give better service reviews for functional app technology than visiting a website on a desktop or mobile device.
Insurance companies that don’t offer an app will find themselves in a limited company; according to a study, 74% of companies give customers the ability to access and manage their claims using a mobile app.
4. Market Uncertainty
Insurance firms can feel cautiously optimistic about any uncertainty in the marketplace in the coming months. Reports on 2020 market conditions prognosticate that the resilience of the insurance industry in 2019 will continue in the coming year.
Insurers can expect to see rate increases of close to 5% this year—though challenges may arise for auto insurers as auto collision severity has gone up with few signs of slowing down. Insurers in 2020 should monitor the market conditions and be prepared to adapt should more uncertainty occur.
5. Data-Driven Predictions
In 2020, insurance marketers would be smart to take advantage of technology tools that use data to predict different outcomes from their marketing efforts. Predictive analytics lets marketing professionals utilize volumes of data from past campaigns that reveal how different changes could impact future campaigns.
These practices take the “trial and error” out of marketing decisions, allowing insurance firms to make decisions based on past data. While businesses should be mindful of data regulations and follow best practices, the upside for insurance marketers to use predictive analytics is very high.