All insurance categories have seen monumental shifts in the last two years, and property and casualty is no different. Here are some top trends.
2022 Trends in Property and Casualty Insurance
All insurance categories have seen monumental shifts in the last two years, and the property and casualty space is no different. The pandemic-stricken world has shifted what people buy and the channels through which they buy it.
The Trends Dominating Property and Casualty Insurance
As we look at the research presented by Majesco
at the 2022 PIMA Summer Insights Conference, these are the trends we can see making waves in our industry:
1. Cyber is high on the list of offerings.
Many of the most common product offerings are in predictable categories — pet products, auto, and travel among them. However, cyber
has hit the top five product offerings, representing an untapped opportunity.
According to Majesco and Milliman’s survey of PIMA members and annual research, the rate of growth in the cyber liability insurance segment was up 34% in the last quarter of 2021. Yet, 83% of C-suite members surveyed don’t believe their companies are ready to combat cyberthreats. This means that companies have the chance to develop today’s cybersecurity insurance approach. This approach would include tightening underwriting, securing remote desktop protocols, and improving employee training on cybersecurity.
2. Soft embedded offers are leading.
When it comes to embedded channel usage, a soft embedded approach is currently the most common, with 35% of property and casualty products taking up this option.
Most soft embedded use is in the “incubated” phase of maturity. Therefore, we have a ways to go before we see it develop. Research shows that property and casualty has a wide-open market to expand into different channels, especially embedded in these incubating and maturing areas.
3. Drivers’ needs have changed.
The COVID-19 pandemic changed the way people drive. With fewer cars on the road, fewer commuters, gas prices soaring, and drivers needing to save money wherever they can, auto insurance must evolve quickly.
One of the major auto insurance trends in the market is a push toward telematics. Of the 40% of auto insurance buyers who were offered telematics programs when they signed up, 63% opted in. People increasingly want to pay for products based on usage and to be agents of their own plans.
4. Pets are like family.
Pet insurance is only growing in popularity and offerings. People have always viewed their pets as family members, but more of us are choosing to protect our pets more comprehensively.
Furthermore, the range of pet insurance products is broadening. Evolving product offerings include nontraditional benefits such as wellness, in addition to coverage for accidents and illnesses. Modular offerings are increasing to cater to the new generations committing to pet ownership, making pet insurance more affordable.
5. Gen Zers and Millennials are choosing multiple channels.
As generations that have just emerged as consumers in the insurance industry, all eyes are on the trends that Gen Zers and Millennials
decide to adopt. Unsurprisingly, 92% of Gen Zers and Millennials are showing interest in digital channels, but almost as high a percentage are interested in working with agents and brokers.
Perhaps most surprisingly — and exposing gaps in companies’ strategies — is that 80% of the Gen Z and Millennial group are interested in hard embedded offerings. This compares to only 9% of insurers that are actually using this tactic. This suggests that younger age demographics are gravitating to multiple channels rather than just the most obvious ones. They truly appreciate variety.
These gaps in channel usage versus expectations and the growing addition of cybersecurity insurance, soft embedded offerings, and pet coverage should show leaders how many opportunities are waiting to be taken advantage of throughout the rest of 2022.To learn more about up-and-coming trends in the insurance and financial services market, become a PIMA member today to get access to exclusive industry insights, peer learning resources, and networking opportunities. Published on September, 6, 2022.PIMA® (Professional Insurance Marketing Association®) is a member-driven trade association focused exclusively on the group-sponsored benefits market.