Industry Trends

The industry has undergone several changes in the last decade. Until recently, millennials put off buying cars and renting apartments or buying homes due to significant school debt. According to a Deloitte study in 2008-2010, millennials ranked cars as necessary as smart phones or social connections but put off buying a vehicle due to the purchase price, maintenance costs and access to public transportation.

However, with the healthier economy, employment prospects have improved for millennials and the need to purchase auto, rental and homeowners insurance has gained traction. This technologically savvy generation has different expectations than past generations. They research automobile purchases via mobile phones or tablets.

With data breaches and new auto technology, the world has gone digital. New mobile technology allows insurers and their clients to communicate without ever speaking face-to-face. Technology has also changed how an agent speaks to a business partner which has streamlined the process, making it more seamless for customers.

Gas prices have decline to under $45 a barrel resulting in lower gasoline prices, saving drivers money. This factor has increased driver's use of cars and the number miles driven. However, with car sharing and more workers telecommuting, the number of vehicles per household will most likely remain unchanged. If gas prices spike, it could create a negative impact on the number of miles driven.

Auto technology has introduced features that keep driver synced with the digital world via hotspots, basic navigation, and better communication, Changes are occurring in base models with safe vehicle technology which are equipped with crash avoidance systems that involve anti-crash sensors and back up cameras. As a result, it has resulted in safer travel though crash avoidance. It has also increased self-diagnostic services for quicker and less expensive repairs.

Business growth

Becoming a digital insurer has become imperative as technology expands and affects how businesses grow. Managing the claims process digitally is becoming standard, particularly with millennials who choose to interact with insurers through social media and electronically via email and text. In the near future, customers will use technology to capture the early stages of claims through video apps which will facilitate the process for claimants and meet the demands for increasingly high turnaround.

Telematics

Technology allows insurance carriers to gather large amounts of data which is being used for telematics or usage-based insurance. Usage based insurance or pay as you drive programs are of interest to millennials who are increasingly concerned about debt. However, there is far less interest with other age groups who are concerned with privacy issues and who benefits from the collection of said data.

There are regulatory limits on what can be used from a car. In the future, many more insurers will merge several data sources to get a more accurate picture for underwriting.

With all the changes occurring within the industry, we are constantly educating our staff and our customers by explaining new products and coverage. At B&J, we understand that technology will help us become more efficient, providing greater satisfaction to our customers.

Health Insurance offers more options than ever to combat price increases and consumer choice. The Affordable Care Act has revolutionized the industry, making it mandatory that all Americans have access to healthcare insurance.

Now, more than ever, it's important to consult with experts in the field. At B&J, we'll treat you like family. Our agents are here for you to find the best plan and discounts available. To learn more about how these industry changes will affect you, your family and your business, call us today to schedule an appointment or stop in any one of our offices. We're here for you every step of the way!