December 17, 2021 by Canadian Underwriter Staff
Matthew Turack, President, CAA Insurance Company
The most important lesson the industry is really starting to respond to is that consumers want clear and sound advice that is easy to understand, and they are looking to companies for this. We recently conducted some research that showed 53% of respondents find insurance policies difficult to understand. When asked who is best suited to teach individuals about the auto insurance system, insurers ranked number one. We need to do more as an industry to make products and services simple and consumer focused.
People are looking for flexibility, so they have options to save money if their financial situations change. Insurance companies have responded to this throughout the pandemic and that will continue. Consumers want to feel that insurance companies are in touch with the big issues we are grappling with. Climate change and diversity, inclusion and belonging are two big ones.
Environmental, social, and governance (ESG) is emerging as a core priority for both corporate structure and governance but also product design. Customers are starting to expect insurance companies to be transparent about what they are doing in these areas. More companies are going to be looking at ways they can implement environmentally sound practices and discount structures for customers who are doing their part. We are beginning to evolve our products and services with a lens on how we can positively impact the environment.
Continued rate relief will be needed in 2022 as we see rising inflation and rising cost of living. The industry will be challenged to help in a meaningful way, whether that be through rate, product or loss prevention.
Driving habits are going to continue to change; the cost of gas is rising and people are going to have to make choices. Our job in 2022 is to continue to help consumers through this tough time.