COVID-19 has had enormous impacts on individuals, society, businesses, and the global economy. The insurance industry is not an exception as it is one of the most hit industries. 

The insurers have been facing challenges, but throughout 2022, there are expectations that insurers will react to the continuous impact of the pandemic. They are going to continue to offer digital insurance in the future. Also, there will be changed customer expectations and more advanced remote working that will undoubtedly contribute to the insurance landscape over the coming years.

2022 Expectations:

Insurers to Re-Establish Customers' Confidence in Insurance Services

Both years 2020 and 2021 have proven to be tough years for insurers. It is due to challenging market conditions leading to higher premiums. Worst has happened to customers as a result of higher rejection rates. However, insurers are more determined to change the narrative in 2022 by making effort to restore customers' confidence and trust according to Watt. 

This will involve minimizing customer losses after the rise of premiums. 

They will aim at bettering customer experiences by making the claims process easy and efficient and increasing transparency to boost retention rates and foster customer brand loyalty. 

Achieving customer brand loyalty and changing expectations, insurers will develop a business model that will help meet new customer demands.

With the Covid-19 not showing signs of relenting, the collision between customers and insurance companies will continue into 2022. As people and institutions continue to adjust and adapt to the reality of Covid-19, a framework should be designed to bring harmony between policyholders/buyers (existing and proposed customers) and insurance companies. 

Though, it will be necessary for insurance companies to clarify whether or not Covid-19 related complications are in the insurance policy package. Does this mean that customers will pay higher premiums than before to cover the new risks?

Improving Workforce Support through Remote Working

More insurance companies have embraced "work from home" - fully or hybrid. Remote working is beneficial due to its flexibility aspect, which is realized to boost staff morale. It works well for working parents and staff with particular personal conditions. Nevertheless, remote working is fragmenting the workforce as it is causing physical distance between teams, which some have said affects their collaboration. 

Considering that this has been affecting various industries, according to Ulyanovich, the insurers will have to look for a solution by introducing effective employee engagement strategies (Ulyanovich, 2021). The strategies will ensure staff members are invested in the company.

Automating Marketing and Sales to Deliver Personalized Ad Campaigns

So they don’t lose touch with customers, the insurers are focusing on automating insurance marketing and sales. A data-driven marketing technique can be an excellent way for insurers to provide more personalized ads that will be useful to customers and have a great return to the company compared to the traditional one. 

Data-driven marketing can reach the right people, offer better ROI, and enhance marketing campaigns. This will make marketing more straightforward from one year to another as per an article by Fintech magazine. In 2022, insurers will have a chance to see more use cases of the Al and automation strategies in the claims process and underwriting.

Advantages of Diverse Product Offering

Another way data-driven marketing will improve insurance is by showing insurers the gaps in the market. This will be possible through identifying the products most customers want more - maybe before they want it. They can spend more time and effort innovating new products and market them to the right audience. Even if customers in 2022 might not be driven by brand loyalty, they are likely to be motivated by their convenience according to Watt. 

By positioning targeted marketing for newly established products to interested customers, insurers will ensure that customers do not shop products from multiple insurers as they used to earlier. This will mean insurance companies must get their distribution right. 

Ongoing Digital Transformation

The insurance industry is continuing with digital transformation, and without any doubt, this will continue for several years. Any insurance conference to be held in 2022 will prove that digital transformation is a significant thing that will have happened in the insurance industry. 

Throughout 2022, the rapid growth of digitized insurance services will comprise technologies such as automation and Al, which will spread wider throughout the industry, ensuring the brokers have much confidence with the newly embraced technology - Fintech magazine. 

The biggest trends across the industry will be as a result of data-driven responses to COVID-19 impacts. They will help to curb experiences of any further losses, earning the utmost customer trust and focusing on meeting their expectations. 

How Insurance Companies Can Market To Customers Better

Event: Getting Insurance To Younger Customers (Millenials + Gen Z) With Better Digital Distribution.

Read more about the event.

What is your distribution strategy?

Edafe Erhie, PwC Nigeria’s Consumer Markets Leader, comments that “the key to a great end-to-end customer experience isn’t just about the shopping and retail experience – it spans across industries. Consumers are looking for a seamless and easy purchasing journey, and companies can achieve this by using a blend of both physical and digital approaches. The result is a greater return on experience with the customer and more lasting results for businesses.”

Join Curacel x Consonance on this live webinar to learn more about charting new paths and strategies for insurance companies to capture this new and growing market. Capturing these markets means your company has rightly positioned itself to lead others into the future. But, it must be fast!

Date: November 13th 2021

Venue: Virtual (Link will be sent to you after registration)

Time: 12pm

Register to attend the event.

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