three choices for digital home insurance in 2022 – digital insurance
Technology has been changing the insurance industry for years, and that trend will only accelerate in 2022. From automated telematics to IoT smart home devices and beyond, insurers are leveraging technology to reduce risk, increase customer loyalty, and give customers the best experience and peace of mind they want. And in many cases they want to use technologies that are already networked in so many households. According to a recent nationwide survey, 66% of homeowners own at least one smart home device.
While the possibilities of technology to further transform insurance are endless, many of the possibilities now and in the year ahead will be shaped by the world around us and the uncertainty created by the pandemic. Here are my three predictions for the insurance industry in the year ahead and how technology can play a critical role.
Hot housing market = new opportunity
A hot housing market and low mortgage rates in 2020-2021 caused many homeowners to move and switch insurance providers. This had an impact on growth and loyalty for almost all airlines. But that shouldn't be rated negatively.
In 2022 we will see more airlines keen to capitalize on both homeowners moving and a new generation looking to buy their first home. More and more insurers will turn to technology like IoT smart home devices to differentiate their offerings at sign-up (often lowering the cost of customer acquisition) and in many cases customers will get a discount on theirs in return Bonuses. Again, we expect smart home devices to continue to grow in popularity and reach a 50% household adoption rate by 2023, up from 36% this year.
No blind eyes when it comes to risk and churn
In 2022, the network operators will concentrate on improving the registration process with the previous network operators. With increasing competition and more consumers changing their behavior online, they can't afford an outdated user interface or poor UX. As more consumers move to the United States, freight forwarders need to find a way to retain customers. Typically, legacy carriers only interact with customers at the time the policy is activated or the claim is reported – which makes this offer even more difficult.
Many transportation companies will continue to turn to new programs (like smart home, auto telematics, etc.) that collect data that will allow them to interact with and train customers throughout their journey while building loyalty. This trust and commitment component will be more important than ever in the coming year in order to win and retain customers.
Increased interest in mitigation due to high impact weather events
Severe weather events have become more frequent and damaging, and experts believe this trend will continue. In the past year alone, events such as the freezing of Texas last February and numerous hurricanes and tropical storms drove up the total number of insurance customers affected and the volume of weather-related damage. In fact, weather-related claims cost the insurance industry over $ 105 billion in 2021 alone, driving up premiums for everyone.
As the New Year begins, we expect these dramatic weather events to continue to inspire insurance carriers to renew their loss mitigation priorities as they look for new ways to reduce claims. Because of this, freight forwarders will prioritize more targeted initiatives around risk management and underwriting, especially for hazards like water and fire.
If we wait and see what 2022 has in store for the insurance industry, one thing is clear: technology will have a major impact on the future of an industry that has been operating in a similar way for decades. The world around us is changing the way homeowners want to insure their properties and how risks are monitored and mitigated. And technology paves the way forward.