Reloading 2020...
Insurance Industry:
12 Trends for 2020 in the New Normal By Patricia Moore Although there is still some debate about when the coronavirus pandemic became public knowledge, I think it’s safe to say that, in the months leading up to 2020, none of us expected to be where we are today. The dichotomy between expectation and reality became markedly clear to me after recently looking back at our annual “12 Trends” blog, which covered topics ranging from telematics and micro-mobility to predictive analytics and virtual reality. These emerging technologies, growing challenges, and urgent calls to action suddenly pale in comparison to the global tragedy and economic turmoil we now face. COVID-era considerations, many with potential lifeor-death implications, have shifted our collective focus back to the basics of business continuity. Health and safety precautions, remote working logistics, and market instability now rank among the top concerns for most organizations. As companies adapt to this new reality, the original twelve trends – now viewed through the lens of national crisis – have changed course from their earlier (pre-pandemic) trajectories.
12 Insurance Challenges and Opportunities in the New Normal 1. The New Face of Auto Insurance With widespread shelter-in-place orders, the roads have become significantly less congested. This dramatic drop in traffic has resulted in fewer auto claims, allowing many auto insurance companies to offer their policyholders partial refunds on their premiums. In addition to strengthening customer relationships, these rate adjustments could pave the way for more flexible
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pricing structures in the future, resembling the usagebased arrangements that have been gaining momentum over the past year. 2. Telematics Commercial fleets are already leveraging telematics to maximize productivity while practicing social distancing, utilizing their vehicles’ automation features to replace traditionally hands-on functions. Telematics may soon see a surge in popularity in personal auto as well, as more companies decide to adopt remote work flexibility on a permanent basis, allowing former commuters to continue to experience the cost-saving benefits of usage-based premiums via mileage-tracking technology. 3. Micro-Mobility For now, community-shared anything increases the risk of viral spread, which has led many cities and other micro-mobility operators to temporarily pull the service. Some companies have made their feet available exclusively to healthcare workers, providing a safer alternative to crowded public transportation systems. As the pandemic subsides and micro-mobility vehicles return to public usage, we’ll likely see a greater emphasis on basic health and safety precautions, such as disinfecting the vehicles between rides. 4. Generational Shifts Whereas generational differences are still important considerations in your marketing and customer experience strategies, COVID-19 has produced an entirely new generational disparity. According to the Center for Disease Control (CDC), older adults have a greater risk of experiencing severe symptoms, complications, and even fatalities from the disease. As the economy begins to “open up,” multiple lines of
august 2020
