Top Trends for Personal Lines of Insurance

Oct 27, 2021

As the dust settles on a tumultuous 18 months of economic uncertainty, several key trends are emerging for personal insurance lines. This “new normal” is a direct result of a wholesale rethinking of underwriting in the wake of the global pandemic.  While consumers are in the driver’s seat, an experienced, trusted broker can help define and design optimal coverage for your home, auto, property or umbrella insurance needs.

Let’s look ahead at current trends and what consumers can expect in the coming months:

Greater Demand for Better Homeowners’ Coverage – Millions of Americans took advantage of the sudden shift to Work From Home (WFH) to upgrade their main residence, change domiciles or purchase a second home. This renewed focus on improving a primary asset has led directly to a substantial broadening of coverage terms and types.

National Flood Insurance Program Changes – FEMA is implementing updated risk rating and risk pricing methodologies for new policies beginning October 1 and April 1, 2022 for existing policies. This means redefined flood risk for all properties and an expected rate change for more than 70% of homeowners who require flood insurance. In light of these changes, choosing a broker who specializes in coastal property coverage is an essential decision.

Usage-Based Auto Insurance – Watch for several major carriers to transition from writing flat-rate policies to pricing based on actual miles travelled.

Personal Liability Considerations – As consumers increasingly share their lives – and opinions – online, risk due to defamation, fraud and libel also increases. Many policyholders are pursuing cyber coverage as part of an overall umbrella protection plan.

New Carrier Products & Partnerships – Carriers have become much more creative in how they pursue and retain customers. Look for an increase in non-traditional product offerings with unexpected partners. Again, your broker can help identify which options are simply sales tactics and which are truly beneficial.

All Things Digital? – COVID-19 greatly accelerated the economy’s reliance on digital. The insurance industry has responded by shifting a substantial chunk of traditional, in-person touchpoints to digital. While instant access can be satisfying in the short term, most policies behind the app tend to lack customization for your specific needs. Start your search with a broker who can help you first find best-in-class coverage and who offers superior customer service in the event of a loss.

Trust Rules the Day – The great digital migration is only as good as it is secure. Consumers, with a multitude of product and carrier choices, will not hesitate to end a relationship should a vendor compromise their accounts or personal data.

How does one leverage these trends to their advantage? Although we’re biased, we think that a strong relationship with a knowledgeable, professional, trusted insurance broker is the best way to optimize spending and protection. Oakbridge Insurance has established relationships with over 400 carriers and can customize coverage for you regardless of your specific needs or budget.

Oakbridge has been protecting our neighbors for nearly 100 years. From Coastal Property Insurance to Umbrella Policies to Boat and RV coverage, we have multiple solutions to fit your family’s needs. Let us know how we can help.

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