What Might Property and Casualty Insurance Look Like Post Covid-19?
As we look toward the future with Covid-19 we cannot say for certain what life will look like, but we can say that our lives will not look the same. There are no markets or businesses that have remained untouched by the virus, including insurance. It is no surprise that during difficult times, new paths must be forged for businesses to continue growing and thriving, or even just survive. There are trends happening right now that show a glimpse of what the future economic terrain might look like. Here are three ways that Property and Casualty Insurance is changing and how it might look post Covid-19.
Greater numbers of remote employees
It turns out that the work-from-home model that many people had to abruptly shift to has actually worked quite well for many employees and companies. In fact, certain companies are considering closing their smaller brick and mortar offices and having their employees continue to work remotely on a permanent basis. For example, Nationwide Mutual Insurance Company has announced their plan to shut down at least five of their traditional brick-and-mortar offices by November 1, 2020. Insurance Business America spoke to Kristen Skender, SVP of Brokerage at Jimcor Agencies, about the complexities of managing teams during this time. In her statement, she mentioned that “For insurance leaders managing remote teams, it’s important to find the balance between micromanaging and managing results,” and also that “…these are unprecedented times that require a bit more flexibility, understanding and compassion.” For both companies and employees, it’s time to embrace a shift of perspective when it comes to the traditional office setting, because remote work will likely become the norm for many employees even after the pandemic status of Covid-19 is a thing of the past.
Stronger emphasis on technology and Insurtech partnerships
The insurance industry has long been considered somewhat old fashioned and a bit resistant to technological advancements. But remote work has forced companies to take a serious look at implementing more modern technology in their daily business practices, and those that had already invested in tech innovation certainly reaped the benefits while the work-from-home order was in effect. According to this Policy Advice article, “Insurtech partnerships are on the rise. According to J.D. Power, customer-focused digital solutions will be brought on by strong partnerships between traditional carriers and startups. Aside from providing better customer experience, these partnerships should also help insurers in cutting costs and improving business process efficiencies.” Many insurance companies like American Family Insurance and Nationwide have already forged partnerships with Insurtech startups. In the words of this Investopedia article, “The belief driving Insurtech companies and investments by venture capitalists in the space that is the insurance industry is ripe for innovation and disruption.” We will only be seeing more from Insurtech and other technological innovators in the insurance arena.
Increased use of mobile apps
Because technology is trending in such a major way, the development of more mobile apps for smart phones and tablets is also on the rise everywhere, including the insurance arena. According to the same Policy Advice article previously mentioned, “The same report shows that 74% of insurance companies are using a mobile app, allowing policyholders to access and manage their policy and claims information on the go. Interestingly, customers who used mobile apps had a more satisfying experience than those who used desktops or mobile browsers to interact with their insurance companies. As we move further along into the digital age, this is one strong digital insurance trend to prevail this year and in the near future.”
If anything, the Covid-19 pandemic has really forced industries to invest more of their focus and finances in convenience technology, including industries like insurance which have traditionally been slower to evolve and streamline without significant motivation. As the business world continues to deal with Covid-19, it will be interesting to see how innovative approaches will improve the insurance sector and become the new normal for the industry.
If you’d like to add to these thoughts on how Property and Casualty Insurance is changing or discuss your career future with us, please contact Jeff to schedule a phone conversation.