Numerous players within the insurance sector aimed to capitalise on novel technologies, including call tracking software and associated cloud technologies.
2023 also witnessed significant attention directed towards critical issues such as cybercrime and the potential impact of climate change on insurance companies.
These concerns persist in the minds of insurance firms, notwithstanding the arrival of a plethora of additional considerations, trends, and anxieties with the new year. For insurance agents and carriers, remaining abreast of the latest industry developments is imperative for maintaining competitiveness and achieving success.
5 Insightful Tips: What Insurance Companies Must Weigh This Year
1. Insurance Technologies
It should hardly be surprising that emerging technologies lead the roster of insurance considerations for 2024. Just this year, investments in the insurance sector soared to over $19 billion, while global investment in insurtech rebounded from a pandemic-induced slowdown. Many insurance firms and agents have retained certain legacy systems that are either less effective or wholly outdated.
Advancements in technology are crucial not only for updating older systems but also for reaching out to new generations of customers and the next cohort of insurance professionals. To attract essential human capital, insurance enterprises must ensure their systems align with the habits and skill sets of younger workers.
Suggested reading: Call Tracking for the Insurance Industry
2. Customer Service
Regrettably, the insurance industry has long been linked with subpar customer service. According to a study, less than half of insurance clients received a satisfactory response to a service inquiry. Examining some of the best practices to enhance customer service, one of the most logical steps is investing in technologies that cultivate a stronger rapport between clients and insurers.
Insurance companies can achieve this by gathering and utilising data to engage with customers in a more personalised manner. Communication technology, such as chatbots or an IVR for incoming calls, can also foster a more gratifying user experience.
3. Smartphone Users
Establishing connections with clients through digital channels is increasingly vital for insurance enterprises as we progress into 2024 — and mobile phones play a pivotal role in this endeavour. One approach insurance companies can adopt to improve their standing is to concentrate efforts on crafting an outstanding mobile application. Clients often rate app technology more favourably than navigating a website on a desktop or mobile device.
Insurance companies without an app may be at a disadvantage; as per a study, 74% of companies provide clients with the capability to access and manage their claims using a mobile app.
4. Market Volatility
Insurance firms may cautiously anticipate any market fluctuations in the approaching months. Reports on market conditions forecast that the insurance industry’s resilience will persist in the year ahead.
Insurers can anticipate seeing rate hikes of nearly 5% this year — though auto insurers may face challenges as auto collision severity has increased, albeit not as dramatically as in 2023. In 2024, insurers should keep a close watch on market conditions and be ready to adjust should further volatility ensue.
5. Data-Driven Forecasts
In 2022, insurance marketers would be wise to leverage technology tools that utilise data to forecast various outcomes from their marketing endeavours. Predictive analytics enables marketing professionals to utilise vast amounts of data from past campaigns, revealing how different alterations could affect future campaigns.
Suggested reading: 7 Reasons Why Insurance Companies Need Call Tracking Software
These practises eliminate the need for trial and error in marketing decisions, enabling insurance firms to base decisions on historical data. While businesses should adhere to data regulations and follow best practises, the potential upside for insurance marketers using predictive analytics is considerable.
Get in touch! We are available 24/7.
