Insurance Industry Trends 2020: Growth, Stats, & Forecast
General Trends in the Insurance Industry
1. The property and casualty (P&C) sector is the biggest insurance sector in the US.
This doesn’t come as a surprise as, since 2018, the P&C market’s net income has been soaring. Currently, it’s sitting at $58 billion, up from $39 billion in 2017. A 10.5% boost in net premiums was a contributing factor to the market growth alongside the $3 billion underwriting gain.
2. Insurtech partnerships are on the rise.
According to J.D. Power, customer-focused digital solutions will be brought on by strong partnerships between traditional carriers and startups. Aside from providing better customer experience, these partnerships should also help insurers in cutting costs and improving business process efficiencies.
Companies like American Family and Nationwide already forged partnerships with insurtech startups, establishing a more collaborative industry in 2020 and beyond.
3. Mobile apps are changing the insurance account servicing landscape.
The same report shows that 74% of insurance companies are using a mobile app, allowing policyholders to access and manage their policy and claims information on the go.
Interestingly, customers who used mobile apps had a more satisfying experience than those who used desktops or mobile browsers to interact with their insurance companies. As we move further along into the digital age, this is one strong digital insurance trend to prevail this year and in the near future.
4. 68% of young insurance agents believe that the industry is too slow to adapt to new technology.
Regardless of how progressive the previous stat was a booming 68% of young insurance agents think that the digital transformation of insurance companies is too slow. This stunted digital maturity might be due to a lack of resourcefulness.
The recent trends in the insurance industry are urging companies to deliver advanced self-service tools and integrated digital communications to keep up with the leading websites in other industries.
5. Prudential Life is in the lead with $800 billion in assets in the US.
In 2018, Prudential Life was hailed as the top insurance company in the US. On a global scale, the company has over $1 trillion of assets under management as of September 2019. Berkshire Hathway, who secured the second spot with $708 billion of assets, may take the lead in the future.
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