The global pandemic of covid-19 has created a atmosphere that have made humans realize the value of one’s life. Pandemic has made potential risks to human life and business starkly visible, forcing the entire civilization and economies to reorient their way of living. The life insurance sector has also seen this impact, the industry settled more claims in the year 2021 than in 2020 due to this global event. A sudden demand for life insurance policies and increased claims induced operational changes for the insurance industry.
The recent trend in the life insurance sector can been seen in below mentioned five points.
- Increase in the policy holders.
There has been a noticeable shift in who and how life insurance solutions are being consumed. A particular increase was witness among the young insurer those in the age group of 20-30 years have become more conscious about life insurance.
- Implementation of technology in operation.
Insurance advisors earlier engaged potential customers in face-to-face conversations due to the challenges posed due to social distancing. They had to change to online meetings quickly. The advantage of online video conversations is that they can be done at any convenient time or even on-the-go.
- Offering of wider range of policies by insurance companies.
With the increase in the demand, it has made mandate for the insurance companies to offer a wide range of policies that can cater to the need of the groups of people. Introduction of specific policy for health care workers, for younger generations, for the one who have been got in the disease of covid are some of the different segment that have got been introduced amid pandemic.
- Sustainability and Environment, Social and Governance.
Among financial services companies, life insurers are better positioned to invest based on Environment, Social and Governance (ESG) principles under the broader theme of sustainability. The long-term capital that they hold is an enabler. They can invest in businesses that commit to environmental goals, sustainability, and better governance.
- Restoring customers faith by Insurers.
In 2022, insurers will have to make efforts to restore customers’ faith in the industry, as well as minimizing customer losses in the wake of premium rises. Insurers will no doubt focus on improving the customer experience by increasing transparency and simplifying the claims process in order to boost retention rates and strengthen consumer brand loyalty.
This year also like the preceding one will be a difficult year for many insurers, with some industries still predicting losses a year ahead. Hopefully, many of the changes insurers can make to automate and streamline their workflows in the coming years can mitigate these losses in the wake of the pandemic.