Everyone expects 2021 to bring plenty of surprises, not only in the insurance industry but in all sectors. The last year reminded people of the folly of trying to predict the future. But it helps people to imagine a better future. Not many people would have thought 2020 would wreak havoc on businesses worldwide. All the predictions investment specialists and researchers have made for 2020 were annulled. As we try to come up with some predictions for 2021, it’s crucial to remember that the world is an unpredictable place to live in. But if it wouldn’t be, no one would need insurance. However, organizations and individuals depend on it.
So, what big events should the world expect to impact the insurance market in 2021? Another pandemic? Economic surprises, swings in geo-politics, zombies, Martians? No one can tell for sure. However, experts can identify the key trends emerging in the wake of the virus outbreak.
Unforeseen events can impact the progress of the following trends, but for now, they seem to gather momentum. The pandemic even accelerated some of them. Identifying them early can help insurance providers to align their services to the evolving needs of their clients and deliver lucrative products and services.
Health and wellness services are more popular than ever
The pandemic has brought health and wellness services to the forefront of people’s concerns. Insurance companies have responded to this change by bolstering their life and health policies with new health and wellness services that meet the needs of the modern individual. The providers that want to stand out on the market will create complete health and wellness packages.
Insurers add new services to their list
Advances in technology and changes in the market open a range of opportunities for insurance companies eager to expand their portfolio. The low investment returns and flat premium revenues predicted for the following year will accelerate this tendency. Some insurance companies will add new services like bobtail insurance to their list and partner with businesses outside the insurance industry to broaden their portfolio.
The businesses that need to purchase commercial policies in 2021 should reach their insurance agents to find out what the bobtail insurance cost is if the insurer just added this service to its portfolio. Bobtail insurance costs approximately $30 per month and $360 a year, but various factors can influence the premium’s cost.
Famous brands will grow
Innovative insurance providers had enjoyed the limelight even before the pandemic because they managed to attract substantial funding. But traditional insurers will also come to the fore in 2021 because their asset strength will enable them to deal with the adverse economic environment and secure the revenue opportunities the market provides. We expect the insurance sector to witness some significant acquisitions and mergers this year.
Sustainability is more important than ever
Together with all the other ones, the insurance industry is pressured to demonstrate its support for the sustainability initiative and address environmental issues like pollution and climate change. Insurance providers need to be proactive in this initiative and make visible changes in their operations to become sustainability ambassadors and outshine their competitors if they want to attract and retain clients. Eco-friendly initiatives can strengthen brands, but insurers need to catch up with the regulatory requirements to understand what measures they need to adopt.