Nearly every industry has been impacted by inflation and other economic challenges this decade. In 2024, the insurance industry will continue to undergo shifts that directly affect careers for insurance professionals. Higher premiums are inevitable due to rising costs that impact supply chains. Here’s a look at the insurance industry landscape for the next year.
Less Health Insurance Choices with Higher Premiums
Federal employees can expect to see nearly a 6 percent increase in premiums for their health plans in 2024. Additionally, due to providers such as Humana leaving the FEHB program, workers will have fewer choices for health plans. There will only be 68 carriers for federal health plans in the new year, with 158 plans to choose from. The previous year, by contrast, offered 271 choices.
Rising Car Insurance Rates
Auto insurance rates will also continue to escalate in the new year. Replacement costs are rising due to supply chain issues such as shortages in labor and materials involving auto parts. So insurers can expect to pay more, which is why customers will see higher premiums. Other reasons for rate upticks will be increasing car thefts and medical claims, some related to natural disasters.
Even though the number of car insurance claims have fallen in recent years, there has been an increase in more severe crashes. Research shows high-speed collisions are on the rise. Severe weather has contributed to this issue. Rising health care costs have been another factor why car insurance rates keep going up.
Digital Transformation for Life Insurance
On the bright side for both insurers and their consumers, technology is accelerating the application and approval process for insurance policies. Life insurance companies particularly have invested in digital transformation, leading to quicker underwriting. While standard underwriting takes multiple weeks or months to process, accelerated underwriting through algorithms helps insurers instantly determine the eligibility of their applicants.
Conclusion
Be prepared for dramatic changes in the insurance industry for 2024. Learn more about the changing economy and workplace from the NAAIA Foundation, which provides philanthropic support for communities affected by disasters. The Foundation specializes in the areas of scholarships, leadership development, business ownership and community development.
Post a comment