To say that COVID has been a major disruptor in people’s lives might be perceived as something of an understatement. In many ways, the virus has put consumers in the same shoes as insurance companies, as it forced insureds to see that risks are omnipresent.
The pandemic has been eye-opening in so many ways. It has caused nearly everyone to think about every aspect of their lives, including their families, homes, cars, and jobs, and how insurance touches every part of their lives.
For insurance agents and brokers to be successful, they need to assess all the changes people have needed to make and consider them as factors before making insurance recommendations.
COVID Changed the Way People Think About Life and Priorities
One of the words that comes to mind when thinking about COVID is urgency. More than ever, people had to face the potential mortality of those they love, and possibly, their own lives.
A major lesson society learned through the pandemic was the importance of not putting things off. We simply cannot know what tomorrow will bring.
The pandemic invoked lots of new questions. Will I be around to take care of my family? Will my family be around to share life with me? Is it the right time to buy a new home or get a newer car?
If the Great Resignation is any indication, millions of workers changed their jobs, or at least thought about it. Something that may have kept workers at their jobs was the fear of losing their health insurance, just when they might need it most.
A PwC survey showed around 37% of people worried that the pandemic would negatively impact their retirement plans.
Overall, people were forced to forgo the rat race for a while and think about what was really important to them. It has not all been bad. About 33% of Americans found silver linings, as the pandemic allowed them to spend more time with those they love.
COVID Changed Personal Insurance Needs
Large numbers of workers made a swift transition to remote work. They had to make fast decisions about whether their home insurance covered their computers, software, printers, and other office needs. They also needed information about where their liability ends, and their employer’s liability begins.
Workers who used their cars for work stopped driving so much, but they may not have thought about making changes to their car insurance policies.
With interest rates dropping significantly, people have been thinking more about buying a home, whereas homeowners have thought about selling and moving. On both accounts, decisions impacted both their home and car insurance needs.
The pandemic caused some people to think about buying a new car, but with the car chip shortage, used cars have been more attractive purchases than new cars. It has never been more important to know your insurance client audience and how to communicate efficiently with them.
How COVID Has Impacted Insurance Choices
COVID has impacted the choices insureds make about health, life, auto, home, and business insurance.
High-deductible health plans are popular choices, but the fear of illness and death has consumers rethinking their health insurance plans, deductibles, copays, and coinsurance amounts.
As for life insurance, the PwC survey showed that 15% of people were more inclined to purchase life insurance because of COVID. The pandemic has more people thinking about the end of life.
With having more downtime, insureds have also had more time to review their home and auto insurance policies to see if coverages were adequate and where they could save money. In many cases, the virus gave insureds plenty of time to shop around.
Travel insurance is now more attractive too, as there is a greater possibility of trips being canceled.
Risk analysis and crisis planning are the backbones of the insurance industry. As the pandemic took root, insurance agents gained opportunities to do what they do best – helping people reevaluate what they have and determine what is important to them, while making sure they have the right protection.
To learn more about how to serve your insurance clients, check out our blogs for insurance agents and brokers at Easy Insurance Pro or contact us at 800-327-6623.