Matthew Turack, President, CAA insurance company
The most important lesson the industry is really starting to respond to is that consumers want clear, sound, easy-to-understand advice, and they look to companies for that. We recently conducted research which showed that 53% of respondents find insurance policies difficult to understand. When asked who is best placed to educate individuals about the auto insurance system, insurers ranked first. 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 situation changes. Insurance companies have reacted to this throughout the pandemic and it will continue. Consumers want to feel that insurance companies know about the big issues we face. Climate change and diversity, inclusion and belonging are two big ones.
Environment, Social and Governance (ESG) is becoming a key priority for both corporate structure and governance, but also for product design. Customers are beginning to expect insurance companies to be transparent about what they are doing in these areas. More and more companies will be looking for ways to implement environmentally friendly practices and rebate structures for customers who do their part. We are beginning to evolve our products and services with a focus on how we can have a positive impact on 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 through rates, products or loss prevention.
Driving habits will continue to change; gas prices are going up and people are going to have to make choices. Our job in 2022 is to continue to help consumers through this difficult time.
Find all the 2022 outlook here.