Insurance is a dynamic industry. It is always changing to meet consumer demands, solve new problems, and help people protect their investments. Since it is always changing, it is a good idea to check in on insurance changes for 2023.
Read on to learn what independent insurance agents should know about insurance in 2023, then contact us at Easy Insurance Pro for more information.
What Independent Insurance Agents Should Know in 2023
Here are some important changes independent insurance agents should be aware of in 2023:
The role of technology in insurance is growing.
Regardless of the type of insurance you sell, technology will play an increasingly important role in the insurance and risk management industry in 2023. Digital access to insurance policies, quotes, and documents will be the expectation of most consumers. Policyholders will expect to work with their independent agents digitally — and agents will need technology to keep up with this demand. More business will be performed electronically as states continue to allow e-signatures on insurance documents and claims can be handled digitally from start to finish. Your carrier partners will also improve their technology, allowing them to work more effectively with policyholders and agencies. Agents will need to match this speed and efficiency.
Consumers better understand their coverage gaps.
People have started realizing they may be responsible for their own future more than the past generations were. The looming threat of social security funds running out has made individuals privately prepare for their own retirements rather than relying on government funds. With fewer private employers offering pensions, people have started purchasing insurance products to protect their futures. Independent insurance agents are positioned to help individuals through life insurance, annuities, and other insurance products — and consumers who understand their potential coverage gaps are likely to seek out help from their agent.
Auto insurance premiums are expected to rise in 2023.
Independent insurance agents who sell auto insurance will likely face the challenge of increasing premiums for their 2023 renewals. Some experts are predicting consumers will pay an average of 12% more for their auto insurance in 2023, squeezing already tight budgets for many policyholders. The increase is blamed on several macroeconomic factors, such as inflation, supply chain shortages, and lingering effects of the pandemic. Independent insurance agents helping consumers find affordable auto insurance may be challenged with rising costs across all carriers. Agents can help their policyholders by explaining the reasons for the increase, quoting competitive rates from different carriers, and making sure all applicable discounts are applied.
Policyholders may need to increase their homeowners’ limits.
Another trend likely to continue in 2023 is the increased cost to rebuild homes following losses or natural disasters. The pandemic contributed to lumber shortages and other supply chain issues. Inflation affects homeowners insurance directly when the costs to rebuild and repair damaged property increase. Because of these rising costs, some homeowners may no longer have sufficient coverage and may need to increase their limits. Independent insurance agents can offer a policy review to their customers to help them identify and remedy significant gaps in coverage before a loss happens. Talk with consumers so they understand this potential issue as you go into renewal season. As with anything in insurance, open communication will help your policyholders understand the changes.
How Do I Learn More?
To learn more about what to know for 2023 as an independent insurance agent, contact the experts at Easy Insurance Pro. Our licensed experts will be happy to answer any questions you have.