What trends will evolve from consumer expectations in 2022

As consumers, we want a personalized experience whenever we shop online, stream videos, or even get a cup of coffee. And we want the companies we do business with to anticipate our needs, and, increasingly, to reflect the values we hold dear.

It’s no surprise that the insurance industry is not exempt from these heightened expectations. The relationship we have with insurers is evolving rapidly. We still expect providers to be there for us in a crisis. But we require more. And we want to feel good about the companies we choose to work with.

In short, we want insurers to transform from premium collectors to lifelong protectors.

And technology is at the core of helping them achieve this. Today’s systems can analyze disparate data sources to develop insights that help individuals in myriad ways. For example, wearables monitor patient health and connected devices in homes help prevent floods and fires.

Given these consumer preferences and technology developments, I believe that we’ll see the evolution of three macro trends, first identified in Genpact’s Insurance in the Age of Instinct research, throughout 2022:

Optimized reality
Insurers will continue to harness new technologies that tailor services to customers’ individual needs, but they will shift from offering fixed coverage to proactively preventing claims. Insurers are embracing predictive intelligence to transform decision-making, for example, bringing in more sources of data to price risks more accurately and using telematics to offer pay-per-mile insurance.That’s not all. Other more sophisticated uses of smart technologies are emerging. Satellite-based systems are helping farmers evaluate soil moisture to predict crop health. Companies are using machine learning to predict and mitigate the impact of natural disasters like earthquakes, fires, floods, and hurricanes.

Both the employee and customer experience will be transformed by the seamless integration of technology across the insurance value chain. Employees will be free to concentrate on more value-added work and create closer connections with customers.

Ethical impact
Driven by consumer expectations, leading insurers are assuming an ethics-driven role within society, becoming responsible guardians.

The move toward social consciousness had already kicked off before the pandemic but took a new direction as companies returned premiums, mainly in auto insurance, as people drove and traveled less.

Insurers are embracing environmental, social, and governance considerations, both in terms of where the companies invest funds, which risks to underwrite, and which social causes to contribute to. One company leading the way is QBE Insurance Group, which offers Premiums4Good policies that invest 25% of premiums in projects that help the environment or deliver direct, sustainable benefits to communities, such as those aimed at reducing homelessness.

In addition, insurers are working to close the protection insurance gap by offering new products. For example, companies are providing a range of microinsurance products to people who cannot afford traditional insurance.

Whole-system planning
To build long-term resilience against systemic threats as well as provide the best customer experience, forward-looking businesses will shift from functioning as closed concerns to being a part of strong, resilient networks.

Creating impactful partnerships that eliminate internal silos and blur the boundaries between organizations will require new approaches. Insurtech products, for example, are augmenting traditional insurers’ products and services. In addition, the insurance ecosystem is teaming to address societal issues, such as climate change.

These three trends are good news for the industry. They are evidence that consumers are looking for insurers to play a bigger role in their lives and society. The companies that step up will likely build trust with consumers while being rewarded with a bigger share of a highly competitive market.