Top Trends Impacting the Insurance Industry

A recent CCC Information Services Inc. report examines a number of trends affecting the auto collision industry, as well as aspects of property and casualty insurance. Technology continues to be a huge change driver for consumers, insurers, repairers and the auto insurance industry in general.

It impacts insurance lead generation , and how agents can attract and close insurance prospects. Whether it’s changing how these players communicate, their expectations or the vehicles themselves, its impact is wide ranging, according to the 2017 Crash Course report.

How consumers use technology affects their expectations of insurers and other vendors they interact with on a regular basis. The report identifies a number of other factors that are changing the auto, insurance and repair industries including:

Younger, more diverse and digitally connected consumers

The U.S. population increased from 193 million in 1965 to 324 million in 2015. Fifty five percent of that growth consisted of individuals from foreign countries. For insurers, this influx means more possible policyholders who may have different views on insurance, require some education on their risks, and want to engage through different sales and service channels.

Almost sixty percent of Hispanics are millennials which means they have unique expectations as consumers compared to other groups. Millennials now comprise the largest generation of the general population, and are more independent in a number of areas than baby boomers or Gen Xers. A recent study by Novarica identified millennials as researching items before purchasing them, frequently buying online, and preferring digital channels. Their preference for digital channels has to do with speed, flexibility and ease of use. Social media and chat options also matter greatly to millennials, while the telephone is still the preferred method of communication for older policyholders.

A Preference for Digital Processes

Consumers prefer to use digital channels for the claims process, according to the Accenture Claims Customer Survey 2014. Millennials went as far as to say they would switch insurance carriers if theirs did not provide a digital claims process. Millennials also value advice and assistance during the insurance purchase process. In its study, Accenture found that 80% of survey respondents said they would switch insurance carriers if theirs did not offer any type of guidance. They are also willing to pay for guidance. Demonstrating that millennials still need help understanding their insurance options.

Increase of Trucks on the Road

As the number of consumers who shop online increases, the more freight that needs to be transported. Trucks continue to be the preferred method for the transportation of freight. The U.S. Department of Transportation predicts a 40% increase in the amount of freight being moved in the next 30 years, while the actual value of the shipments will increase 92%. Growth in urban areas, and an increase in the number of vehicles – both private and commercial – on the road, increases the risk for all drivers.

Longer Lasting Cars

Today’s cars last longer than ever before, and fewer cars are being taken out of service each year. The number of vehicles over 16 years old is expected to grow to 30% or 81 million vehicles by 2021 according to IHS Markit. As a result, the insurance industry would see an increase in newer age vehicle claims where total loss frequency is lower, but repair costs are higher. In addition, the increase in older vehicles on the road could mean that more vehicles are totaled when involved in a collision, further increasing the costs associated with total loss claims.

Changes to the way consumers buy insurance will impact the way you market your insurance products. Parasol Leads can help with insurance lead generation services. Contact us today to learn more about our insurance leads, our insurance lead generation practices, and how to sign up to buy insurance leads.