We and selected third parties use cookies or similar technologies for technical purposes and, with your consent, for other purposes as specified in the cookie policy. Denying consent may make related features unavailable.
You can consent to the use of such technologies by using the “Accept” button, by closing this notice, by scrolling this page, by interacting with any link or button outside of this notice or by continuing to browse otherwise.
No items found.

2022 insurance industry trends: How carriers and brokerages navigate challenges and capture opportunities

Julianna Rice
August 26, 2022

As the world settles into its “new normal” post-pandemic, insurance industry trends are expected to touch carriers and brokerages alike. Each moment in time presents its own challenges and opportunities, and 2022 is no different. Consider the most pressing trends expected in upcoming months – and how to navigate difficulties while taking advantage of new opportunities.

Difficult Economics

Many industries took an economic roller coaster ride in the last two years as the early days of the pandemic pushed many markets to record lows. Government assistance and ongoing stimulus programs helped spur a quick recovery a year later for several industries.

According to a McKinsey report, the impact on the insurance industry was noticeable. In 2020, premium growth slowed to about 1.2 percent with profits falling by about 15 percent from the previous year. Preliminary data suggested that premium growth and profits rebounded somewhat in 2021.

The report goes on to discuss several structural factors that have been challenging insurance industry growth including, “persistent low interest rates … pressure spread-based businesses such as life insurance; pricing pressures driven by fee transparency, digital attackers, and lower-cost options; and organic demand that is growing only slowly in mature markets.”

Although lower premiums are always appreciated by customers, agencies and brokerages face increasingly high revenue pressures. This scenario means that cost can no longer be a competitive differentiator.

Tech-Savvy Competition

While major household-name insurers may have brand recognition and a trusted reputation, they often have more difficulty innovating as quickly as tech-savvy newcomers.

Cited as one of the four major trends to watch by Insurance Innovation Reporter, new digital carriers are successfully grabbing market share. The article states that “Consumers are clearly more comfortable buying policies from new carriers, and agents are open to offering their products. Not only do many offer coverage similar to established insurers, but digital first approaches offer stellar customer service.”

The digitally driven customer service experience is expected to be a key differentiator for carriers and brokerages alike moving forward.

Costly Service Options

Many existing carriers and brokerages are exploring one of three options to boost customer service levels.

Some major carriers are offering a dedicated customer service line. Agents can choose to give up a significant percentage of their commission to direct customers to this service, which can manage endorsements, make policy updates, and even write new policies. This is helpful in allowing agents to rely more on the carrier’s support rather than hiring a customer service representative. This also mitigates potential errors and omissions (E&O) liability risks. However, as carriers compete on premium costs and agents face increased payroll and decreased interest in brick and mortar services, even a small percentage of each policy’s commission is sorely missed.

Other carriers and brokerages are hiring dedicated customer service representatives to manage these tasks. While this encourages customer service that is up to par with the company’s standards, this is also the most costly option. In addition to payroll and benefits, these customer service representatives typically require a specific license to advise on policies, recognize potential fraud and discuss claims. The result is a cost incursion for training, licensing, state taxes and fees as well as continuing education requirements.

Finally, some organizations are choosing to outsource these responsibilities to a third-party solution provider to file claims, answer questions and manage other details. However, even third party administrators and business process outsources are facing challenges around high employment costs, high attrition and difficulty meeting existing SLAs. The challenges facing the insurance industry aren’t limited to only carriers and brokerages!

Automation Alternative

All existing options can successfully take some of the servicing burden off carriers and agents, but they can be a costly and ongoing investment. Additionally, none of the above options are exempt from the current state of employment (or lack thereof) within the insurance industry.

Automation alternatives driven by artificial intelligence and machine learning technologies can help address some aspects of the workflow by reducing the time and cost of manual processing as well as allowing carriers and brokerages to scale the quantity of policies more affordably and effectively.

For example, the Digital Coworker from Roots Automation doesn’t just complete a recurring task like robotic process automation, it also learns from the process, variables, and contextual cues just like a human. Automating complex problems can be a cost-effective way to retain more revenue for today’s carriers and brokerages.

For more information about Digital Coworkers, contact the Roots Automation team today!

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

Fusce non convallis mi. Curabitur nec rutrum orci. Etiam vitae diam ut tellus venenatis ultricies. Fusce vitae ipsum sed urna tempor tempor et vitae dui.
Fusce vulputate molestie est

Fusce non convallis mi. Curabitur nec rutrum orci. Etiam vitae diam ut tellus venenatis ultricies. Fusce vitae ipsum sed urna tempor tempor et vitae dui. Aliquam nibh ante, tempus vel ultricies nec, tempus sed felis. Nullam et efficitur velit. Aenean odio nulla, facilisis a commodo eu, suscipit at augue.

Aliquam rutrum dui sapien. Aliquam pulvinar lectus accumsan est dictum, et faucibus justo ornare. Mauris placerat placerat consequat. Donec commodo consectetur nunc, et posuere orci lacinia sed. Duis mollis, eros quis porta laoreet, mi est euismod lectus, vitae volutpat quam enim congue tellus. Lorem ipsum dolor sit amet, consectetur adipiscing elit. Proin ornare laoreet consequat. Integer at accumsan lacus, eget ultricies augue. Vestibulum semper sapien at venenatis pretium. Integer nec iaculis lacus. Sed elit nisi, luctus sit amet vehicula nec, mattis nec purus. Nulla facilisi. Nam ornare in justo eget facilisis.

  • Praesent sit amet lectus quis metus sagittis tempor.
  • Sed mattis ipsum vitae turpis laoreet condimentum
  • Sed orci erat, rhoncus efficitur eros a, sollicitudin commodo tortor
  • Sed accumsan ex viverra est tincidunt bibendum a non nulla curabitur eget ligula mauris
  • Nam ut sagittis velit suspendisse ullamcorper quis lorem vitae hendrerit
  • Vivamus diam orci, dignissim ac nulla hendrerit, porttitor posuere risus

Cras vel leo mattis viverra tellus eget vestibulum est

  1. Praesent sit amet lectus quis metus sagittis tempor.
  2. Sed mattis ipsum vitae turpis laoreet condimentum.
  3. Sed orci erat, rhoncus efficitur eros a, sollicitudin commodo tortor.
  4. Sed accumsan ex viverra est tincidunt bibendum a non nulla curabitur eget ligula mauris.
  5. Curabitur sit amet auctor tellus, at scelerisque sem. In sit amet convallis arcu, id vulputate velit. Proin feugiat interdum nulla, eu malesuada massa commodo quis.
  6. Vivamus diam orci, dignissim ac nulla hendrerit, porttitor posuere risus.

Cras vel leo mattis viverra tellus eget vestibulum est

  • Etiam arcu metus, vestibulum et consequat sit amet, imperdiet at augue donec condimentum risus at consequat sollicitudin.
  • In sit amet nisi vitae odio tristique posuere integer vel magna dignissim, sodales mauris a, tempus odio nullam orci sapien, posuere non posuere et, laoreet vel velit.
  • Quisque eleifend tempor eros aenean et tempus neque nam ut porttitor velit maecenas consectetur, lacus at commodo efficitur, est neque tincidunt leo, et dictum nunc lorem a est.
  • Maecenas viverra turpis vitae eros tempus porttitor nulla tempor nunc eros, eu elementum arcu dapibus a etiam a tristique metus.

Share this post


Let's make work more human, together.
Contact Us