The digital age has brought on a rapid change in society, from work-life to culture, it seems like humanity is advancing at lightning speeds. What are some of the biggest changes that will impact the insurance industry in the near future?
As Notorious BIG said in the 90s, “More money more problems.” This idea also applies to the immense amount of data in the insurance industry. Just like money, data is a good thing. But new problems will arise with the more data that is collected. While having tremendous amounts of data will always benefit an agent, it opens the door to new problems. Agents might track the wrong data and hackers are always probing the world wide web in search of data they can hijack, hold for ransom, or use it to their advantage.
In addition to an agent’s data concerns, companies will be looking for insurance for their data, as well. Insurance agents must stay up-to-date on these data trends, mold policies accordingly, and adjust these policies as the data-age evolves. In the wakes of the Facebook Data Scandal, insurers must also look out for any regulations regarding online user data and alter their data policies accordingly.
New technologies, such as self-driving cars and ride-sharing, will lead to needed changes in insurance policies. These means of transportation are changing how people commute and blurring the line between carpools and taxis. Even though insurance agencies will create the initial policies, they will certainly be hashed out in the courts and altered after rulings. This market is evolving rapidly, not to mention the self-driving cars that are on the horizon.
Smart home technology is also on the rise. Products such as LeakBot and Simply Safe have revolutionized the way homes are repaired and protected. What happens if one of these newer technologies fail?
Drones have already created air rights issues in the courts, but how does this affect insurance? On the flip side, drones can be used by insurance companies to swoop in and document a property. How will consumers and insurance agencies respond to these technologies?
There is no denying that the climate is changing, but the polarizing arguments lie in whether these changes are man-made or natural. Regardless, changes in the climate will require the insurance industry to alter certain policies. For example, residents of Tampa Bay and New Orleans will require different policies than those in North Dakota.
The Affordable Care Act
No matter what side of this argument you stand on, there’s no question that the ACA has had a substantial impact on the insurance industry. Changes are sure to be made as Democrats and Republicans wage war over the policy and alter it as the party power shifts between each election cycle. Agents in the health insurance sector must remain on their toes if the government makes any changes to this policy.
The Generations are shifting.
Every decade or so the United States experiences shifts in the dominating demographics. We are currently facing one of these changes today. As the second largest generation, (Baby-Boomers) is in its final years of employment, the largest generation (Millennials) has fully integrated into adulthood. In addition, Generation X members are at the height of their careers and the oldest members of Generation Y are in the entry-level stages of the workforce.
The two largest generations, Millennials and Baby-Boomers, are at pivotal chapters in their lives. Baby Boomers will adjust their insurance needs based on their retirement and the family they raised. Look for this aging generation to focus on their retirement needs. They will want to take care of the family members they created and raised.
On the other hand, Millennials have become the largest client demographic. Ranging from their early 20s to late 30s, the entire demographic is in need of vital insurance policies that will remain for the rest of their lives.