The Future Of Insurance: COVID’s Impact

  • Life Insurance
The Future Of Insurance: COVID’s Impact | Pelorus

Like much of the rest of the world, the COVID-19 pandemic forced the insurance industry to scramble to find new ways to provide service to customers while also ensuring the safety of employees. So what’s next for the future of insurance? Here are some of the fundamental changes we’re seeing in the industry:

Changes in Consumer Behavior

The pandemic changed customers’ perception of life insurance. A recent survey found that consumer behavior shifted in these key ways:

  • 15% of respondents indicated they were more likely to purchase life insurance
  • 37% said they have concerns about how the pandemic may impact their finances and their retirement plan

With many consumers facing financial strain, the price of insurance has become a more important factor. As a result, insurance carriers may provide your clients with more flexible billing options or alternative pricing. In addition, they may be more focused on finding ways to help individuals meet their financial wellness needs to retain customers in a more competitive marketplace.

Increased Automation and Digitization

Insurance companies were already increasing their use of automation and converting older methods to digital before the pandemic, but COVID-19 has accelerated that trajectory.

The push to move forward quickly can be challenging, but it’s also a great opportunity. Advisors may provide more product and service options, new systems can help streamline the sales process, and the ability to connect to clients quickly and easily may even help build stronger customer relationships.

In the same survey cited earlier, insurance consumers weighed in on the importance of digital capabilities:

  • 41% said they were more likely to change insurance providers because of lack of digital capabilities
  • 15% indicated that insufficient digital capabilities made interacting with insurers more difficult

Connecting Virtually

There’s a fundamental shift in the workplace across all industries. Many companies (including those in the insurance industry) transitioned to remote work when the pandemic started. And now they’re weighing their options.

Some are implementing a model that includes a mix of remote and on-site employees. Others are evaluating their priorities, strategies, and plans rather than assuming that a return to pre-pandemic norms is optimal.

What it means is that virtual interactions with our customers and business contacts are now the norm, and we’re connecting with people in new ways. And we’re seeing the benefits of connecting online—it saves time, it’s convenient, and it cuts costs.

Let Pelorus Be Your Guide

We’ve partnered with advisors in life insurance, disability, annuities, and long-term care insurance for more than 19 years. The Pelorus team can guide you and your clients through the changing post-pandemic insurance marketplace. Contact us today for assistance.

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