What does the future of insurance look like?

At Soluco, we understand insurance itself is a niche product. It’s a product a consumer buys because they feel like they need it but hope they never actually have to use it. This gives the insurance industry a very unique position. Users always want the “best deal” but with the most premium service and output. The contradiction of needs and specification is often why the industry gets such bad press. It seems the insurance industry as a whole is an industry expect to get more than they pay for. For an industry that is ever changing, what does the future look like?

Evolving Customer Expectations

It’s obvious that over recent years, the insurance industry has become evermore complex and faced a number of roadblocks. This requires an evolution of the industry to stay up to date to consumers.

Consumers are living in an age where if you need a recipe for a dish they tried off the coast of Spain they can pick up their phone and have the recipe in minutes. Users are in need for constant speed and personalisation. If your company reflects this in a distribution model the users will only appreciate the outcome. If we take Soluco for example, we have revolutionised the way certain industries tend to operate.

If we look at Simpwill, Estate management could take an individual half a day to do, once they have made their appointment to sit down with a professional to help write it up, get ready at home, make their way to a destination, have the meeting and come back, it could be a lengthy process. Simpwill’s estate management platform, you could achieve this at home in your PJs in around 15 minutes!

What is open insurance?

Open insurance is an emerging term in the insurance industry. The term refers to providing services and data to surrounding partners, stat-ups and other communities in order to create new services and applications.

In technical terms, the bones of open insurance comes from the integration of open API architectures inserted into the users insurance application.

Open Insurance is due to break down the common roadblocks in the insurance industry, allowing more companies even more access to even more data. The result of this, we should see a rise of start ups and competition from players that aren’t traditionally active within the insurance space. The rise in competition may focus on the under-focused niches of the insurance industry or try to tackle the bigger space. Either way, brands need to be ready to react.

How COVID-19 effected the insurance industry?

As a whole, Soluco has identified that COVID-19 will revolutionise the way the insurance industry performs. Its expected to emerge from the pandemic with more agile & cost-effective solution as more people will fear the unknown than ever before.

2020 has been a year that no person, never mind insurance company could have prepared for. As the COVID-19 pandemic lingers throughout the world a lot of insurance companies are experiencing a significant downturn which is predominantly due to the economic recession, payment delays, lack in premium users, disputes on coverage and an increase in direct claim costs.

Some aspects of the insurance industry are set to thrive and some are set to trough before they peak. For Example, the initial hit for life insurance organisations wasn’t great. With policy holders taking pay cuts or even being let go, the initial thought of a consumer would be to cut off direct debts with the company but looking long term, the industry will boom, people now knowing how their worlds can get turned upside down in such a small period of time consumers will want to prepare for the worst.

How should insurance companies prepare for 2021?

As COVID-19 is still very much prominent in today’s world there is no doubt we should expect a knock-on effect into 2021. Certain businesses have adapted and for convenience of the user and switched all their goods and services 100% online, that service is here to stay. As a result of this insurance companies should expect the same switch.

The work models of companies must reflect the shift. More employees will expect flexible working conditions to work from home more regularly. Soluco found that around 25% of insurance companies have taken the necessary steps so the employee is trained up to a different work function so they can still be active once their work is done. The recruitment process is ever more critical as non-traditional competitors will also be recruiting for remote positions.

In Summary…

The world of insurance will need to change with the times. COVID-19 has changed almost every social norm and unfortunately the workplace has been affected. Employers should be open to being flexible, the use of digital technology will be the next win in most industries and will only streamline their own business models in the long run.

Insurance companies should additionally prepare for what the future may hold and prepare the employees the same. Flexible working will become the new social norm so its recommended you have the facilities in place that you can easily make that switch if needs be and your employees are cross-trained so they’re never at a loose end.