Over the past few years, there have been significant changes in the insurance industry. With evolving policyholder expectations and technological advancements, it’s no surprise that insurers are feeling the pressure to keep up.
To remain competitive, insurers must take a proactive approach to understanding their policyholders’ needs, rethinking current strategies, and having the right ‘people power’ in place. Below, we’ll review some key industry trends and explore how these strategies can help them stay ahead of the curve.
Latest Developments in the Insurance Market
The size of the global insurance market currently sits at USD 6037.9 million and is projected to hit a value of USD 8591.4 million by 2029 with a CAGR of 5.2%. While the industry is slated for consistent growth, insurers must be able to adapt to hurdles and changing trends to keep up.
On the macro level, the threat of inflation and rising interest rates can erode insurers’ margins. Certain economic indicators have pointed towards a looming recession, which would be a headwind to nearly all industries.
Rising competition, talent shortages, changing consumer preferences, and digitization also continue to revolutionize the industry in an unprecedented way. Insurance customers have a greater demand for personalized service, mobile-first access, and competitive premiums, which has put the policyholder experience at the forefront of insurers’ strategies.
Why Insurers Need to Stay Ahead of the Curve
Historically, the insurance field hasn’t particularly focused on innovation and technological advancements. But with many dynamic forces at play in the industry, insurers are increasingly seeing the value in finding ways to stay responsive for several reasons, including:
- To stay competitive
- To reduce risk
- To enhance the policyholder experience
- To improve efficiencies
There will always be new demands and trends in the industry. The insurers that stay flexible will have the upper hand over their competition and position themselves for success. But what does this look like in practice?
Strategies to Stay Ahead
Given the benefits of being a forward-thinking insurer, let’s review some strategies insurers can implement to stay ahead of the curve.
Innovation doesn’t always mean adopting the latest and most advanced technology–it’s about looking for ways to unlock efficiencies, access untapped markets, enhance communication, and improve the policyholder experience. Devoting more time and resources to innovation can help your business evolve and grow.
Focus on the Policyholder Experience
According to a Salesforce report, 84% of customers believe that the experience a company provides is just as important as its product or service. As consumer demands evolve, the way insurers react could mean the difference between a happy policyholder and one looking for coverage elsewhere. This points to the need to remain agile and offer digital-first, personalized services in an increasingly digital world.
Work With the Right Partner
Even the most innovative processes and technology aren’t enough to stand out if you don’t have the right ‘people power’ in place. Having friendly industry experts on your team is essential for delivering a memorable policyholder experience. But keeping up with changes in demand and having the capacity to respond quickly to policyholder inquiries can be a difficult feat. This is where the right Business Process Outsourcing (BPO) partner can help.
Partnering with a BPO provider gives you access to their talented team to respond to changes in demand, plus their general expertise to guide you through market changes. This helps you provide an exceptional policyholder experience while freeing your internal team to focus on other business priorities. It’s a win-win.
Find Your Competitive Edge with Covenir
Managing ongoing market changes can be challenging. When you want to provide your policyholders with an engaging, forward-thinking service while still having the time to focus on strategic growth initiatives, partnering with a trusted BPO partner can be the missing link to unlocking your competitive edge.
At Covenir, we provide seamless and on-brand solutions that your policyholders can count on. We have years of extensive onshore industry experience in customer service, premium services, FNOL and claims, underwriting support, policy advising/sales, print and distribution, and virtual mailroom services. We’re not just an extension of your team; we are your team.
Contact us today to learn how our turnkey solutions can power your operations with the people power you need to stay competitive in today’s insurance landscape.