2022 insurance industry outlook

Insurers often characterize themselves as the economy’s financial first responders, helping policyholders respond to and recover from some of the most challenging times in their lives by paying to repair or replace damaged properties and cover their liabilities. Buyers all too rarely deal with insurers after paying their premium bill until filing a claim—the moment that matters most for the industry.  Trust distinguishes and elevates companies such as insurers, connecting them with “the common good,” according to Deloitte’s report linking trust with economic prosperity. “Put trust at the forefront of your planning, strategy, and purpose, and your customers will put trust in you.”  Whether dealing with customers, regulators, investors, or employees, insurers will likely benefit from trust-building initiatives in both the short and long term.

KEY MESSAGING:

• Despite lingering concerns about COVID-19 variants, most insurers responding to Deloitte’s global outlook survey expect to piggyback on an accelerating economic recovery and additional digital technology investments to generate significant growth in 2022. 
• However, our research also identified multiple challenges for insurance leaders to tackle next year beyond ongoing efforts to adapt to the pandemic’s aftermath. They range from economic hurdles such as inflation; to sustainability concerns including climate risk, diversity, and financial inclusion; to rapidly evolving consumer product and purchase preferences.  
• Future of work considerations have also multiplied as carriers seek to create flexible return-to-office strategies on the fly, while simultaneously struggling to retain and recruit high level talent during what might be the world’s most competitive job market—particularly for those with advanced technology and data skills.  
• Insurers are increasingly dependent on emerging technologies and data sources to drive efficiency, enhance cybersecurity, and expand capabilities across the organization. However, most should also focus on improving the customer experience by both streamlining processes with automation, as well as providing customized service where needed and preferred. 
• On a more fundamental level, many carriers should also be taking steps to bolster trust among stakeholders, in part by being more transparent in how they collect and use personal data, as well as more proactive in seeking comprehensive solutions to big picture societal problems such as mitigating the financial impact of future pandemics and natural catastrophes.