Insurance Review of 2021 and 2022 Trends
1. What was the high point of 2021 for the insurance industry?
Across the industry, sustainability has quite rightly been high on the agenda this year. It’s been wonderful to see such a notable uptick in talk across our sector around how we can support a more sustainable future, with many examples of this being put into practice in the way we do things. This transpired into multiple solutions such as green car parts and ‘repair not replace’. Not only are these examples of more sustainable ways or working, they’re also an effective way to improve our customer service and become more sustainable.
2. What was the biggest disappointment during the year?
We’re continuing to see a surge in climate related flood events and we’re still in a situation where grants are only available after the ‘horse has bolted’. This means that vulnerable communities and businesses face the risk of losing their homes and possessions which is disappointing as prevention would be far cheaper than cure. It feels like these individuals are completely at the coalface of global warming with limited ability to protect themselves.
3. What was the best news for the sector? Why?
Innovation. The industry has gone from strength to strength, a development which has been catalysed by several factors. The need for remote working practices has led to many more efficient and effective digital solutions for customers. For example, remote investigations, use of drones, digital experiences created for customers. We’ve enhanced our AI capability through the deployment of sprout AI which has improved our ability to speed up decision making for customers.
4. What was the worst news for the sector? Why?
I would say the last two years have created the perfect storm for the industry with both Brexit and the pandemic. The two factors combined have inevitably hindered our ability to speed up the reinstatement process.
5. Who had a good year?
Again, I would say our ability to speed up our innovation journey, a proportion of which has been fuelled by industry collaboration with tech partners. These have performed amazingly well, Sprout AI for example has done a phenomenal job in working with us.
6. If 2021 was a binge-worthy TV show – what would it be?
Game of Thrones. The world was turned on its head, there were dragons to slay and challenges remain, but ultimately we got through it and face a brighter future together.
7. What do you anticipate to be the biggest event of 2022?
We hope to see a quick recovery of supply chain capability. This is both in terms of the delivery of material and skilled resources. This will enable us to fulfil our commitments to our customers, particularly in light of the impending storm season surges.
8. What challenges will the sector face? Is it ready for them?
The pace of change in our workforce is going to be a clear challenge for our sector. In order to maintain pace, we must continue to deploy learning and development capability to create the workforce of the future. We’ve already made great traction with this, particularly around our apprenticeship programmes and data and automation academies. It’s crucial to future proof your workforce now, not in five years’ time when you realise you have all the wrong skills in your team.
9. What trend(s) will impact the market in 2022?
I would point to three key areas; the distribution landscape and the way in which it continues to consolidate, the pace of change in the use of innovation and customer drive for clarity around policy cover.
10. What would the ideal 2022 look like for the insurance sector?
• Reputationally our industry remains tainted by the issues encountered around business interruption cover through the pandemic so this is something we need to put right.
• We’re really keen to provide our customers with transparency of cover.
• Most importantly, working with the Government to put our supply chain back to where it was 24 months ago.
