The insurance industry, essentially a large collection of analysts and predictors, loves to give its “look ahead” at the trends and developments for any new year. 2022 is no different! So, without further ado, Oakbridge looks into our crystal ball and gives our straightforward assessment of what the industry sees as key emerging themes of risk for the coming months:
COVID Normalization: From risk mitigation to data utilization to a reliance on all things digital, the pressures of the global pandemic have had an outsized impact on the insurance industry. Lessons learned from unique underwriting events such as vaccine transport, employee contagion exposures and dynamic cyber security, have accelerated the digitization of both policy writing and claims processing.
Supply Chain & Inventory Management: The past year’s supply chain headaches have created an abundance of risk data. The information gained will mean premium pressures for shippers and logistics firms. Data will also provide some customer benefit in more accurate premiums costs and expedited claims processing and payments.
Climate Change: Changing weather patterns and skyrocketing damage repair costs are quickly revising how underwriters cover high risk properties and activities. In the US, the second phase of the National Flood Insurance Program will be implemented in April, changing flood criteria for existing policies. Private Flood insurance options will also make their debut this year.
Property: Inflation and a continuing increase in housing valuation will put new pressures on the costs of property insurance. Carriers will be reevaluating profit structures and readjusting premiums accordingly. Urbanization and climate change are impacting the formula as well. For consumers, it’s time to reevaluate coverage and shop for deals with your broker.
Insurance Technology & Operations: Technology has enabled the insurance industry to pivot relatively quickly over the past two years. This rapid change has created a few headaches, mainly in talent training and retention. New systems require new knowledge and have placed outsized pressure on claims and underwriting training for employees. The Great Resignation adds additional headaches for employers. On the bright side, these rapid improvements mean consumers will see an exponential increase in products and coverage customization.
Whatever changes the coming year holds, Oakbridge Insurance is here to help protect our neighbors’ families and businesses regardless of technology or weather. For nearly 100 years, we’ve read the tea leaves and taken advantage of the latest developments to offer the highest value coverage possible for our customers. Let us know how we can help simplify what is often a complicated outlook.