2021 was an interesting year in many ways. The pandemic continued to affect our world in many ways, from vaccines to shutdowns to supply chain woes. Let’s take a look back at 2021 insurance industry trends and the lessons we learned along the way.
It hasn’t exactly been business as usual but the new normal includes lots of changes in our industry. Risk and insurance has always been a dynamic field — and that’s continued over the last year.
Read on for our take on the 2021 year in review. Many of the trends we saw will continue as we move forward into the new year — and when it comes to tech trends, Integratz can help you every step of the way. Reach out to learn more about our low code RPA tools to drive your business forward in 2022!
2021 Insurance Industry Trends That Shaped The Industry
Interesting trends and innovative technology shaped 2021.
Digitization was made easier. Low code or no code technology, along with robotic process automation, made the process of going digital easier for many carriers. With more user-friendly systems, employees at insurance companies were empowered to start managing some of their own development and maintenance. This was a substantial change in the way companies innovated — keeping some control in-house means a lower cost. This brings technology into play for smaller companies as well as the larger ones with bigger R&D budgets.
With low code business process automation, companies can easily understand and manipulate their systems when changes need to be made. The technology is approachable — and you don’t need to be a developer or have any experience to make it work. Let Integratz show you how we can make things simple with low code automation.
Remote workforces grew — along with risks. More people are working from home or remotely. This is convenient and often cheaper for employees and employers alike. But remote workers are at a higher risk of some cybersecurity concerns, like phishing attempts. Their remote connection may not be as secure as it would be at an office, and there is more opportunity for error with VPNs and home Wi-Fi connections. All these concerns highlight the need for more cybersecurity — insurance, training, and improved systems.
Cyberattacks were on the rise through 2021 and it doesn’t look like that trend is going to change anytime soon. Infamous ransomware attacks like those on the NBA and the Colonial Pipeline proved cybersecurity issues could be expensive and challenging to resolve. Insurance companies AXA and CNA Financial also suffered from cyberattacks in 2021.
There was an increase in mergers and acquisitions. Mergers and acquisitions, always a part of life in the insurance industry, increased during 2021. Largely attributed to lower interest rates, we saw higher M&A activity in the second half of the year. With some notable changes, like Lemonade acquiring Metromile, the industry shifted once again. We can expect to see this 2021 insurance industry trend continue into 2022 with new activity taking place.
As companies buy, sell, and transition businesses, having simple and user-friendly technology that can be adopted by new users is key to success. With low code RPA tools, anyone can learn to update and maintain your systems. Having good technology also makes your business more attractive if you’re looking to be acquired. Check out how Integratz can help simplify your workflows with low code RPA.
Sustainability is a key factor for insurance businesses. Sustainable practices are key in every industry, including insurance and risk management. Companies are investing more and more in ESG, or Environmental, Social, and Governance. How your business does business is important. Issues relating to supply chain, labor management, and environmental responsibility are at the core of many business failures or successes.
No business can afford to ignore its corporate social responsibility. And insurance companies are often uniquely positioned to help. Consider carriers divesting from coal or tobacco and the work carriers have done to improve supply chain accountability over the years — it’s important social work and this trend is likely to continue.
What Did We Learn in 2021?
Considering how these trends affected the insurance industry, we learned some lessons in 2021 to carry forward.
- Hybrid work arrangements will continue. We’re facing the new normal where hybrid work will continue. Few workers are going back to a full-time in-office model like before the pandemic. We’ll continue to adapt to different working conditions.
- Digital is more important than ever. Carriers, agents, and brokers need a great digital solution for their policyholders to compete.
- Robust low code tools will continue changing digitization. Now that businesses of any size and budget can invest in low code technology, this will change the face of digitization. Keeping your design and maintenance in-house with simple-to-use RPA tools means you keep control.
- Change management is a critical skill. The insurance and risk management industry is dynamic and change is the new normal. Businesses that excel at change management will gain a competitive advantage over those that don’t.
The Year Ahead — Looking Forward to 2022
As we move into the new year, many of these significant 2021 insurance industry trends will continue. Digitization is the new normal and finding the best and most innovative technology solutions to drive business forward will be critical.
Employees will continue to work remotely so having simple and easy to use technology is a key to success. By investing in low code automation, you can digitize your workflows and processes without complicating your systems.
Contact us today for your free preview call and let us show you how we can work together in 2022 to make your workflows and processes simple!