2020 heralds a new decade. So, what are the top 4 trends in property and casualty insurance for 2020 and beyond?
1. Growing workforce
As of 2018, the US insurance market had roughly 622,000 employees. The numbers have risen since 2018. The sector does not just affect the lives of the customers it serves but is also the source of livelihood for many. As the industry continues to see growth, it will continue to have employment opportunities for many as agents.
2. Chatbots leading the charge for customer interactions
As more and more property and casualty insurance companies rely on their online presence for visibility to customers, they are coming up with new ways to interact. According to a study by Duck Creek Technologies, 95% of customer interactions will be powered by chatbots by 2025. While this prediction maybe a little on the optimistic side, there’s no denying that chatbots have become a powerful tool for interaction with customers, assisting them with policy application or claims processes.
3. Improving insurance pricing with better data and analytics
Machine learning, AI, and traditional approaches are being blended to offer better data and analytics to property and casualty insurers. A variety of factors affect the pricing of premiums. Climate and weather forecasts are a significant risk factor that property and casualty insurers consider when operating in various areas. As such, hyperlocal weather and climate data and analytics will be useful to improve property and casualty insurance pricing.
4. Near real-time data will propel the growth
As suggested by new trends, wearables, smartphones, and drone data capture can provide p&c insurers with near real-time data. It will be easier for property and casualty insurance companies to handle policies and claims much better, propelling their growth. For example, pay as you go auto insurance relies on data collected by a device attached to your car.
These trends include guides for what the P&C insurance companies should do to stay in today’s market. With changing strategies and a competitive environment, insurance companies should know about the trends.