Property and casualty insurance agents cater a significant market in the US. According to a survey by Deloitte, one of the world’s largest four accounting companies and the world’s largest professional services network, the sector’s net profit soared to $60 billion in 2019, a 66% rise from last year.
Property and casualty insurance agents sell both personal and commercial insurance. To stay ahead in the competitive industry of insurance, insurance agents should always research about the trends. So, what are the top 4 trends for property and casualty insurance agents in 2020 and beyond?
1. Growing workforce
As of 2018, the US insurance market had roughly 622,000 employees. The numbers have risen since 2018. The sector does not just affect the lives of the customers it serves but is also the source of livelihood for many. As the industry continues to see growth, it will continue to have employment opportunities for many as agents.
2. Chatbots leading the charge for customer interactions
As more and more property and casualty insurance agents rely on their online presence for visibility to customers, they are coming up with new ways to interact. 95% of customer interactions will be powered by chatbots by 2025. While this prediction maybe a little on the optimistic side, there’s no denying that chatbots have become a powerful tool for interaction with customers, assisting them with policy application or claims processes.
3. Improving insurance pricing with better data and analytics
Machine learning, AI, and traditional approaches are being blended to offer better data and analytics to property and casualty insurers. A variety of factors affect the pricing of premiums. Climate and weather forecasts are a significant risk factor that property and casualty insurers consider when operating in various areas. As such, hyperlocal weather and climate data and analytics will be useful to improve P&C insurance pricing.
4. Near real-time data will propel the growth
As suggested by new trends, wearables, smartphones, and drone data capture can provide property and casualty insurers with near real-time data. It will be easier for these companies to handle policies and claims much better, propelling their growth. For example, pay as you go auto insurance relies on data collected by a device attached to your car.
These trends include guides for what P&C insurance companies should do to stay in today’s market. Property and casualty insurance accounts for $1.6 trillion in premiums which is about one-third of the insurance industry and is one of the few markets that have yet to be disrupted. Moreover, with changing strategies agents should always move forward with the industry trend. If P&C agents keep up with the emerging trends, they can better cater to consumer demands and know about the industry. Likewise, as the insurance competitive environment is competitive, insurance companies should know about the trends.