Global Insurance Outlook Looks Strong for 2022, so Why Should The Industry Worry?
As an international speaker who specializes in virtual and live speeches on insurance and financial services sales, I frequently emphasize that the topic is quite personal to me. Prior to my speaking career I sold insurance, and after five years, worked my way into the Million-Dollar Roundtable. I am passionate about the industry and want to see sales reps succeed.
Are You Ready?
After all we have been through around the world, insurance industry experts are projecting a positive outlook for this year. The prestigious Swiss Re Institute projects 2022 as globally being a good one for insurance and financial services.
Worldwide, year-to-year, growth in premiums (life and nonlife) has modestly gained on average from 3.3 percent to 3.9 percent; however, emerging markets have gained from 2021 to 2022 by nearly 2% from 5.6 percent to 7.4 percent. China remains strong from 6.3 percent in 2021 to a projection of 9.0 percent in 2022.
So why is the industry worried? In a Deloitte Insights article by insurance industry expert Gary Shaw (November 17, 2021), Shaw notes:
“The challenges insurers face ranges from economic hurdles such as the potential for sustained inflation; to sustainability concerns including climate risk, diversity, and financial inclusion; to rapidly evolving consumer product and purchase preferences.”
One, important point among many the article and latest research relates is that despite much needed advances in technology and cyber-security, is the fact that most “carriers should also focus on improving the customer experience by both streamlining processes with automation as well as providing customized service where needed and preferred.”
As an industry, we cannot allow technology and systems over people. To maintain this balance, we must all elevate our resilience to meet the changing climate. As a result of the pandemic, the world has seen a rapid increase in inflation coupled with consumer preferences to conducting more insurance purchasing decisions online.
It is about your vision
Why are the coupled areas of inflation and purchasing decisions presenting such a challenge? Unfortunately, customers often confuse price and coverage. As we all know (and we constantly see this), that poor coverage often results from the perception that “cheap is good.” Of all things to not skimp on in order to save money, saving (for the sake of saving) on insurance is the worst idea. However, we must be flexible in our efforts to help customers see that point.
While globally, 2022 projections seem strong, what do the policies being sold represent? It is up to each representative, no matter the country, to have the vision to offer clients the highest degree of personalized service they have ever been offered. We must do this to ensure, the personal and business protection they seek is the highest quality they can afford.
Though we are in a time of “online everything,” it should not mean the absence of the human touch. Globally, the insurance industry must be determined to have the vision in mind that our customers need our professionalism, wisdom, experience and expertise. Insurance is one of the most important purchases any person can make; it should not be left up to a computer to be the final judge.
To contact Scott Burrows, International Virtual Insurance and Financial Services Speaker for a presentation, please reach out to him through this website or his office at: + (520) -548 1169
