Insurance Agency
 min read

Insurance Industry Trends & Strategies in a Competitive Market [2023 Edition]

Published on
January 6, 2023
Ray Huang
Head of Marketing

Ray is the Head of Marketing at Canopy Connect and has helped dozens of startups and growth companies over his 20-year career to develop strategies and implement tactics that yield high-impact results.

Stand out from the rest in an unpredictable market. Check out these insurance industry trends and strategies to thrive in these rocky times.

Technology, Covid, supply chains, extreme weather events, war, labor, and inflation—the insurance industry has turned into a tumultuous space, making today’s industry trends even harder to predict. Customers’ needs are changing and insurance agents must adapt to survive the change.

You don’t have to fly blind, however. Check out these top-of-funnel (TOF) marketing strategies that will help you remain connected with customers and continue growing your business.  

Insurance Industry Trends: Mitigating the Impact of Inflation

Inflation is the rate at which the price of goods and services rises over time. Consumers are facing some of the harshest inflation rates since 1981—2022’s inflation rate peaked at more than 9% in June, and we ended the year at 7%.

There is a multitude of factors that could have influenced current inflation rates. For example, current world events like the war in Ukraine and the lingering effects of the pandemic have caused a spike in the cost of living. Additionally, businesses are having a harder time finding the skilled employees they require—leading to higher wages.

Unfortunately, the insurance industry is not immune to the effects of inflation. The increased cost of goods and services along with an increase in client claims has resulted in claims costing significantly more than anticipated. Making the industry incredibly risky.

Mitigating the Impact

The insurance industry is introducing higher-priced premiums with stricter underwriting—mitigating the risk insurers might take on. Eventually, the factors causing rapid inflation will subside, which will lead to the industry softening along with the demand for lower prices.

As premiums rise across the board for current and prospective clients, you’ll be facing difficult conversations. Having strong client relationships not only builds trust but gives the client peace of mind that they’re getting the best deal from you.

Cutting costs within your business operations will also soften the effects of rising inflation. Many technological solutions are available that not only automate routine processes but can also be money savers. These solutions can be implemented throughout your business and give you space to focus on customer retention and satisfaction.

The Rise of the Trusted Insurance Advisor and the Value-Over-Price Approach

Inflation has led the insurance industry into uncharted territory. This means agents must have a clear understanding of their client's wants and needs. Customers tend to look for the lowest prices, so you should always consider alternative approaches given the current economic conditions.

Oftentimes, insurers solely focus on the price of their premiums, not the overall value.  In a time of need, the quality of the insurance policy and carrier will matter far more than the price. You must strategize simple yet effective ways you can convey the value of your services—also known as the value-over-price approach. This can be presented to your client through diagrams, videos, social media, and blogs.

Ultimately, you should shift away from marketing your business as an insurance provider. Instead, present yourself as a trustworthy insurance advisor and give your customers peace of mind when you say you want what is best for them. Building these relationships takes time, but will go a long way toward lasting customer loyalty.

Growth of Independent Insurance Agencies

More and more captive insurance agents are making the leap to become independent agencies. While there are a lot of benefits of a direct carrier—like brand recognition, inbound leads, training and support—captive agents tend to feel, well, captive, and out of control on decisions that can have a big impact on their ability to sell policies, and to earn the commissions that come with it.

Independent agencies have traditionally been more of a risk, albeit with a higher upside. There are more resources available than ever, and belonging to the right insurance networks gives them access to more carriers with competitive rates. The availability of quality training resources from the networks and training or coaching groups has become very good, and the support, resources and networking opportunities are very helpful.

Remote Work and Video Calls

Remote work has become somewhat of the norm for the last two years. Thanks to video meetings, agents were able to meet with clients without spending time and money on travel. This as also enabled agents to expand their territory as they can now connect with clients regardless of their location—the potential downside is that your competition pool has now increased as well.

Social media, texting, and other messaging has made digital marketing more accessible to agencies and increased the speed of communication. Now, they can connect with even more clients and carriers than they would have in previous years.

insurance industry trends independent
Source: Shutterstock

Improving the Overall Customer Experience

A report from The State of the Connected Consumer reveals, 84% of consumers consider the customer service portion of their experience to be just as important as the goods or services they’re seeking. You should always be looking to improve the customer experience for your clients.

The technological solutions provided by Canopy Connect can help you gather prospect information and present personalized solutions. Remember to approach potential customers as an advisor rather than a provider.

Expand your marketing efforts across multiple platforms—social media, blogs, online ads—that can open up multiple lines of communication. Digital marketing is an affordable option that puts your business in front of a greater number of potential customers.

The Canopy Connect Experience

Due to rapid technological advancements, consumer expectations, and industry standards changing, old methods must be changed. Additionally, skyrocketing inflation has left agents scrambling to figure out how to provide a satisfactory client experience while remaining in the black.

Customers are online and that’s likely where they will remain—even the ones you might have previously counted out. On your journey to improving customer experience, retaining clients, and growing your business, software implementation will play a significant role. Canopy Connect’s trusted software allows you to securely access your prospect’s policies, premiums, limits, deductibles, and more. You can produce quotes quicker and instantly identify new upselling opportunities.

Simply send your client an authorization link via text, email, or QR code. Once they sign in, you’ll receive all the information you need to make the best value-over-price proposal. This includes policy details, insurance documents, contact information, driver data, and claims history.

Canopy Connect is what your business needs. Contact Canopy Connect to schedule your personalized demo.