It's without a question that 2020 has been a year to remember. The emergence of COVID-19 and the impact that it has had on familiesand businesses has been significant to say the least. Millions of jobs were lost and some major companies went bankrupt in orderto salvage the damage that has already been done. While the economy is set to bounce back to some resemblance of normalcy relatively soon due to the COVID-19 vaccine being distributed in record time, what does this mean for the insurance industry and its predicted trends for the coming year of 2021?
High Demand/Limited Supply
Insurance companies are wise to prepare for a hard market in 2021, meaning that the demand for insurance will be high but the amount of insurance available will be in limited supply. This is caused from, of course, the hit that the economy has took from the currentpandemic. As a result of these hard market conditions, higher rates may be the new normal until the market is back to normal. Nevertheless, insurance companies will double down on offering value and peace of mind in order to ensure that customers wont strayaway as premiums rise.