Global Business Insights

P&C Insurance in 2024: A Chat with the Experts on What to Expect

Written by Carolyn Kibat | Nov 13, 2023 8:51:20 PM

A new year means an opportunity to reflect – and time to anticipate what may be coming ahead. With 2024 right around the corner, I reached out to experts from our Insurance Intelligence practice to get their take on what we should expect to see across the insurance customer lifecycle in the new year. 


UBI Disruption


Stephen Crewdson, Senior Director of Insurance Intelligence
, shared a trend he's keeping an eye on when it comes to insurance shopping in 2024. 

  Our 2023 U.S. Insurance Shopping Study shows that consumers are increasingly interested in Usage Based Insurance (UBI) as premiums are increasing across the board. UBI is disrupting the decision to bundle auto and homeowners insurance as many consumers are finding their best deal is to have a UBI-based auto policy and a homeowner’s policy with a different, lower-priced carrier. We expect UBI to play an even larger role in insurance shopping in 2024 as premiums continue to increase and consumers explore more ways to save." 

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Adding (& Communicating) Value 


Breanne Armstrong, Director of Insurance Intelligence
, provided her take on policy servicing trends we expect to see continue into 2024.

 In the face of heightened emphasis on rate adequacy, insurance carriers are left with no other option but to increase premiums. The escalating importance of conveying the overall value proposition for auto and home insurance policies becomes crucial, especially with anticipated continued higher shopping levels in 2024. For customers who want to stick with their current carrier or who don’t find a better option, the focus shifts to reducing the costs of their policies. If the carrier hasn’t already conducted proactive outreach offering a policy review, customers will be reaching out to their agents or insurer seeking ways to mitigate their higher premiums. This presents an opportunity for carriers to highlight the existing and potential value of the policy and the advantages of being their customer.

Strategic partnerships between insurers and other companies are one way we have seen carriers bring additional value to their offerings and we expect to see more of this moving forward. For example, starting in 2022 Amica began partnering with Rocket Mortgage to provide Amica customers savings on a home loan or refinance, and State Farm has invested in ADT offering their homeowners insurance customers free smart home security systems, sensors and installation as well as a reduced rate on monitoring if the customer is willing to share their data with State Farm."  

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Digital Claims Transition Continues
 


Mark Garrett, Director of Insurance Intelligence
, wrapped up our conversation with his expectations for claims in the new year.

  Rising claims costs continue to put pressure on claims organizations to find efficiencies, and digital solutions are a key opportunity where insurers will be focused. In total losses, for example, industry leaders are using tech to determine totals notably quicker and seeing positive results in both cycle time reductions and improved customer experiences.

We’ve also seen increased usage of digital channels for claim reporting and communication and expect growth to continue. Texting is now the #2 digital method of progress updates behind email, surpassing website/app usage, and will continue to grow as more insurers roll out these alternatives to customers. However, insurers will be challenged with engaging customers with their preferred interaction channel, which is key to overall satisfaction, as not everyone wants to engage with digital channels in the same way. Continuing to have claim staff be available, responsive and express empathy will be challenging as high caseloads and longer-tailed claims continue in the future."

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Wrap Up

These are just a few of the trends our experts encourage industry leaders to keep an eye on as we head into 2024. With the pace of change in the P&C industry increasing over the last several years, we can expect to see those insurers who focus on customer trends and expectations and actively orient their business around the customer to outperform those who do not. As you look to develop and implement your strategy for 2024, ensure that you maintain a laser focus on your customers so you can best deliver on their needs. 

If you need support navigating the changing forces across the industry and building a best-in-class experience for your customers, we're here to help