Growing Insurance Industries in 2024

It’s important for all insurance agents to stay on top of emerging trends in the industry. This is especially true for independent agents, though, who are in charge of their own destiny.  There are many growing insurance industries in 2024 and many emerging trends that will shape and reshape the way independent agents operate this year and beyond. Below are some of those top trends. 

Digital Transformation 

We are well into the digital age, yet technology continues to transform life as we know it on a daily basis. Many people think of digital transformation happening on a large scale and not a small one.  In this regard, you may think that this transformation is only affecting large insurance carriers and firms, but that’s not true. Independent agents can see a wealth of benefits by embracing technological tools to make their job easier.  These tools can enhance the effectiveness and efficiency of many processes, but specifically how sales are done at the independent level. When data is used properly, it can be extremely powerful in driving how processes can be created, refined and employed.  Independent agents are able to gain an edge in the market by offering insurance products that are more tailored to individual clients, which helps them stand out. 

Artificial Intelligence 

Artificial intelligence, or AI, is perhaps the single technological tool that got the most attention last year, and that should continue to have the biggest impact this year. Again, it’s a tool that has been made available to everyday people through programs such as ChatGPT, which the masses can use.  Independent insurance agents can learn and harness the power of AI by integrating it into online chatbots, email automation and even content creation for blogs and social media posts.  AI can become an all-powerful technological assistant for independent insurance agents who often need a lot of help but can’t afford to hire it. 

Risk Mitigation 

With climate change becoming more pronounced, weather is becoming more extreme around the country. The U.S. National Oceanic and Atmospheric Administration, for instance, reported that in 2023, there were 25 climate or weather “disasters” that each caused at least $1 billion in losses.  While some parts of the country were responsible for a large portion of those events, no area seems immune from them anymore. This is causing a shift in the insurance landscape, as carriers are doing all they can to mitigate these potential losses.  For independent agents, the effect can be seen with new insurance product solutions, additional discounts and even educational materials that are meant as a way to help prevent losses.  These have always been available in the commercial market, but are starting to become available in the personal side, too. This means independent agents may be able to offer their customers innovative and unique products and discounts that will have risk mitigation baked into them. 

Changing Customer Demographic 

The next new generation that enters adulthood brings with it many changes — in terms of how they live, how they interact with people and what they prefer. That is nothing new, but Gen Z is perhaps one of the most unique generations in centuries.  The people in this generation don’t know what it’s like to live without cellphones. They grew up with high-powered technology in their hands, and that has changed the way they approach life  Everything is at their fingertips at all times, but they desire human interactions and connections at the same time. For an independent insurance agent, this means it’s essential to embrace digital technology tools for marketing and onboarding, but emphasizes how important it is to still make a one-on-one connection with customers.  Remember that members of Gen Z are the ones starting families, purchasing their first home and entering the job market. They may not be your biggest customers now in terms of dollars spent, but they could be with you the longest. 

New Products 

One major growing sector in the insurance industry is usage-based insurance. This is something that Gen Z has seemed to desire greatly — almost a pay-as-you-use-it insurance coverage.  For instance, this type of auto insurance would include a monthly base rate plus an additional per-mile rate. This means that customers would pay based on how many miles they drive in a month.   This is the next advancement in rewarding drivers based on their driving habits. Many major auto insurance carriers already offer discounts for this, allowing customers to install a tracking device in their car or on their phones that monitors how they drive.  Usage-based insurance takes this one step further, actually charging people for only the miles they drive.   For independent insurance agents, this is a great new product that they can offer their customers. It also rewards agents by providing them with a trove of data on their policyholders that can lead to future sales. 

Discover the Good Life

At Good Life Insurance Associates, our experienced insurance sales associates are here to provide support and training for both new and experienced agents. To learn more about us, remember to explore our business support services. Or, to speak with a member of our team about your journey to becoming an independent agent, contact us today!

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