With the new year, comes new trending insurance topics in 2020. As technology advances and cultures evolve, insurance companies must stay ahead of the game. It's more important now than ever, to remain knowledgeable about what's coming down the road, and pivot as needed.
Read on to uncover the top 10 trending insurance topics in 2020:
1. The Sharing Economy
People are wising up and renting out their time and assets. And what’s wrong with monetizing your cabin up north, when you’re not using it?
By listing on websites like Airbnb, for example, companies and consumers are making money on the side, but they aren't aware that insurance probably isn’t going to protect them if something goes wrong. So, who should be responsible if the unspeakable happens? This is what insurance companies are currently grappling with.
2. Driverless Cars
As of now, cars are not completely independent from a human operator, thus, accidents resulting from these types of cars can still place responsibility on the owner/operator of the car.
In the near future, however, cars may be 100% driverless. In that case, the manufacturer of the vehicle may become responsible for accidents. And insurance companies will have to be ready for this new way of thinking.
3. The Gig Economy
In addition to the sharing economy, the gig economy continues to be a topic of discussion amongst insurance companies.
Freelancing services and independent contractors who operate under platforms like Upwork pose a concern for insurers since the freelancer is not operating under an employer and not 100% on their own.
4. Cyber Risks
Small businesses are taking cybersecurity seriously by turning to insurance coverage to protect themselves from data breaches (and the way they communicate potential breaches to consumers), pay for credit monitoring, and even business interruption.
5. The Internet of Things
Consumers are plugging everything into the internet. Smart Homes, cars, and devices aren’t just hot topic trends, they are becoming more and more commonplace.
Insurance companies are happily partnering smart devices with insurance policies to evaluate the true nature of the risks involved. With data to observe (also referred to as telematics), risk can become much easier to assess.
6. Cannabis Continues to Trend
The discrepancy between state and federal law regarding the cannabis industry leaves insurance companies on unstable ground. Small businesses operating within the industry need insurance policies to protect their businesses even if it is still illegal under federal law.
Cities throughout the world have eagerly begun adopting community-based transportation sharing in the form of bicycles, small motorized scooters, and other non-automobile methods of transportation.
Some cities provide the fleets and require a liability waiver before utilizing the transportation, but the problem of liability still shows its ugly face. More and more people are taking advantage of these fleet-based programs, and thus more accidents are occurring. So, who is liable?
8. Natural Disasters As Trending Insurance Topics
Natural disasters and catastrophic weather events are on the rise and insurance companies are staying ahead of the weather by changing their risk assessment efforts. Education is at the forefront of their efforts with prevention being the driving force.
Insurers are providing attractive incentives for those who take preventative measures to reduce the risk of injury and damage.
9. Insurance Apps
On the business side of insurance, most companies have begun creating mobile apps for their consumers. Mobile-friendly websites may do the trick, but consumers enjoy the ease-of-use with apps when shopping for insurance and referring to their accounts.
While apps can be up and running in no time, they do require updates and must remain relevant, or insurers run the risk of losing credibility.
10. Employment Gap
Unfortunately, insurance companies are starving for new talent in their workforce. Baby boomers are retiring faster than positions are being filled. Insurance companies are becoming more creative and looking for ways to attract young talent that has long been ignored.
As the world grows, develops, and technology changes who we are, it’s important for insurance companies to stay ahead of the trends. Adjusting to changes in our culture, and being flexible, is a sure way to prove continued credibility and support for consumers and businesses.