Australia’s Insurance Industry Forecasts for 2022

Australia’s Insurance Industry Forecasts for 2022

 

The future looks bright for the insurance industry as experts see a global growth in the market, even as uncertainty looms because of the new variants of COVID-19. Based on a new forecast by Swiss Re Institute, global insurance industry will mark a new record with premiums exceeding US$7 trillion by mid-2022. Consequently, the Australian insurance industry is also given a glimmer of hope for the new year.

For more insights on what 2022 may bring to the Australian insurance industry, read on. We’ve compiled some reports to give us a glimpse of the industry in 2022.

2022 would be a year of growth and challenges

According to a survey conducted by Deloitte, more or less one-third of the respondents are hopeful that revenues will substantially improve in 2022. Most insurers also anticipate a faster economic recovery and increased digital technology investments, and experts see that global need for insurance is likely to continue to rise.

However, as expected, the road to this growth will be bumpy with economic hurdles ranging from quickly changing consumer product and purchasing preference, inflation and sustainability concerns such as climate risk, diversity, and financial inclusion.

Increased technology transformation should meet human touch

When the pandemic started, most insurers have put some digital solutions in place to continuously provide services. In 2022, experts see most insurers evaluating and re-assessing these solutions to become a permanent virtual workplace and customer service environment. Insurers are becoming more reliant on emerging technology and data sources to increase efficiency and expand capabilities across the board.

Most should, however, concentrate on improving the customer experience by automating procedures and delivering personalised service where it is needed and preferred. This would give clients a more human touch despite the digital transformation that is happening.

Finally, concerns on cybersecurity should be properly addressed in a way most people would understand to boost confidence on digital solutions.

Transparency will be a key to boost trust

Experts see that most insurers will become more transparent about how they gather and use personal data to improve stakeholder trust and increase retention and profitability. They can also take a more proactive approach to addressing questions on issues such as reducing the cost effect of future pandemics and closing coverage gaps for natural disasters.

SK Insure will continue to be here for you

Our insurance brokers at SK Insure have a deep understanding of the Australian Business Insurance market. We are and will continue to offer long-standing relationships with leading insurance companies to provide the best insurance for you. Talk to us today via the different channels listed below.

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