The unforeseen global pandemic of 2020 affected companies and people around the world and strongly affected the insurance industry. Some companies experienced large losses and drastic changes in the workplace, while others were classified as "significant" companies that were critical of the functioning of the public in everyday life.
When considering the effects on individuals, many realized how harmful a COVID-related health crisis can be in their finances if treatment and care were not covered by insurance. Unemployment peaked at 1
No matter how you look at last year's events, the pandemic affected every person and will continue to affect them and their insurance needs in 2021 and beyond. To stay up to date on the changing landscape, below are the best insurance trends to keep on your radar to avoid surprises during the new year.
Personal insurance trends to see 2021
In 2020 is behind us, the coronavirus is still present, forcing companies to work with limited capacity and continue with remote work. This means that people work from home and commute much less – which eliminates about 41 minutes of commuting time a day. So what does that mean for car insurance 2021?
According to the Insurance Information Institute, passenger car insurance companies have returned nearly $ 14 billion to customers due to reduced driving due to the pandemic. Keller-Brown always encourages our customers to let us know about significant life changes, such as teleworking or losing a job. These changes can lead to reduced mileage and lower prices.
You have probably spent more time in your home in 2020 than ever before. If you are dealing with any home renovations that have increased your home value by over $ 5,000, you should talk to your insurance agent to make sure you have the right coverage. This includes basement renovations, outdoor entertainment areas and extensions. Read more about how home improvements can affect your coverage and what you can do about it in this post.
Healthcare has obviously been a hot topic in 2020 and that trend is going nowhere in 2021. Healthcare will continue to be a high priority for individuals of all ages, with Many people are using telecommunications health and virtual care more than ever before. Insurers will focus on this trend and invest in more virtual services to better serve customers.
There are certain factors that will contribute to rising healthcare premiums in 2021. Mental health coverage has become a priority in recent years, with a huge one due to the pandemic. In addition, people with conditions such as diabetes, high blood pressure and cardiovascular disease are more prone to COVID-19, which has led to an increased focus on offering solutions to manage their condition.
The COVID-19 pandemic has unfortunately generated more awareness of the critical need for life insurance. More people, especially millennials, bought life insurance in 2020 to protect their families if they became ill and passed away. Life insurance is coverage that is particularly beneficial for those who have relatives or who want to provide financial support to their loved ones if they can no longer provide them financially. Despite the fact that more people have taken out insurance, life insurance premiums have not increased.
Read more about our individual life insurance policies here.
Commercial insurance trends to watch
With the transition to a remote workforce, cyber threats have drastically increased and are expected to continue until 2021. Employees have been forced to work from home networks or perhaps even personal devices that may or may not have used cyber security protection properly. Even more worrying, companies that did not support remote employees before the pandemic was hit were forced to make the switch quickly, which could potentially monitor proper compliance and cyber security checks designed to protect data and devices outside a secure corporate network, making them easier targets for cybercriminals.
With work from home, policies are likely to remain and increased use of Internet of Things (IoT) devices with 5G, companies will be more prone to cyberattacks and threats and should consider investing in cyber insurance in 2021. Keller-Brown offers cyber-liability insurance that covers a range of digital challenges such as damage due to loss or theft of client data, introduction of a virus into another company's network and e-mail slander.
Workers 'Compensation Insurance
In Pennsylvania, workers' compensation protects your employees and your business. If your employee is injured at work, work insurance pays for health care, disability and death benefits. Workers' compensation is the only major commercial insurance line that has not experienced significant premium increases in the last five years. Due to the significant reduction in time at the workplace, employees' compensation claims have decreased significantly. However, there is uncertainty about the long-term health effects of severe cases of coronavirus, which would ultimately increase workers' compensation costs in the coming years.
Reach our team to learn more about employee compensation insurance and how it can protect your business 2021.
Commercial umbrella insurance gives companies extra liability protection. Experts estimate interest rate increases for accident insurance buyers due to social inflation, leading to higher payments. In today's climate, there is still so much uncertainty and unrest, which contributes to increasing the pace. Companies with large corporate risks experience the largest increase in umbrella and extra liability protection due to situations such as increasing process costs and broader definitions of liability.
Whether you are a person or a company seeking insurance coverage, it is always best to talk to an agent to discuss your options. Being proactive against your insurance needs is the key to being protected in many unexpected events.