Next Big Thing in Insurance: Trends Shaping Insurance in 2021

The year 2020 taught us quite a lot of lessons, not just about the pandemic’s impact but never to predict the future. However, the year also gave us an image of the volatile future, and why we have to pay attention to the insurance trends of 2021. Only a few people had an inkling of the havoc wrecked by the Covid-19 pandemic even though it was before us all. 

Despite the pandemic throwing everyone off course, the insurance industry’s robustness could absorb the shocks. We know that 2021 will come handing us some surprises. Of course, our world has become more volatile and unpredictable; we’ll need insurance coverage more than ever.

At Tillman Insurance Advisors, we want to help you as policyholders stay ahead of these trends. Below are a couple of these insurance trends of 2021;

1. Digitalization of Insurance Products

With the lockdown protocols that were effected globally, insurers understand that the traditional approaches are quickly becoming obsolete. As a prospective or current policyholder, you should look forward to changes in insurers’ product offerings. 

Of course, the entire insurance industry is built on products and services that help policyholders stay protected against loss. As one of the insurance trends of 2021, there will be a shift to the technology-driven insurance product offering. 

In essence, the insurance buying process will be more straightforward, and you’ll have a plethora of options from both agents and carriers for doing business online.

2. The Popularity of Wellness Products

Health policies are pretty fluid in response to changing needs and requirements of customers. Than ever before, people are embracing a healthy lifestyle with a preventive healthcare measure. That’s why insurers will come up with products that intend to make you fit and healthy. 

More so, the insurers will provide exciting benefits to the policyholders and woo more policyholders into the fold. Aside from this, Internet-of-Things will shape the online insurance industry as the technique will help the insurers and even the customers. 

It’s all about automating the claim process with little input from the policyholder. 

3. Pay-As-You-Go Insurance

In the coming months, reliance on fixed premiums will lapse as there will be demands for pay as you go form of insurance. Insurance policyholders are falling in love with the flexibility that these forms of premium offer. 

It’ll start from auto-insurers who are likely to switch to usage-based fees; then, it’ll become a trend in the auto-insurance industry and beyond. There might be an introduction of incentives for policyholders to switch to electric vehicles. 

4. Data-Driven Personalized Insurance

Of course, the industry has always relied on data, but it’s about to take the forefront as an insurance trend in 2021. Insurers are adopting big data to deliver personalized insurance products. What insurers are seeking to achieve with data is to utilize it in customizing packages. 

In the end, risks will be minimized, and there will be the accuracy in the calculations of claims. Insurers will be sifting data using Internet-Of-Things, social media profiles, and credit reports. It’s all about arriving at fair pricing of policies. You see evidence with usage based auto insurance taken from vehicles to determine premiums.

5. Unfavorable Market Conditions

The global economy took a brutal hit in 2020 due to the pandemic, and 2021 is meant to be a year of recovery. That’s why you’ll see insurers preparing for the demanding market conditions that will spill over into the new year. 

Expects new coverage limits along with new T and Cs to further protect insurers from potential damages of any waves of the pandemic. While premiums might be on the rise due to this, insurers will go all out to ensure that there is a corresponding value proposition. 

These insurance trends of 2021 concern both the insurers and the policyholders; no one is exempted. At Tillman Insurance Advisors, we will stay abreast of these insurance trends of 2021 and help policyholders make the most of it.