Thursday, March 29, 2018

Three Auto & Home Insurance Trends Credit Unions Should Know

Auto and home (A&H) insurance products are significant ongoing investments your members make to protect what matters most in their lives. And, offering these products is another way we, as credit union leaders, can deliver on our promise of value as we work to provide excellent service and increase member retention.

Whether or not your credit union currently offers A&H insurance, keeping an eye on emerging trends is key to evaluating and working with your current insurance provider or to helping you implement new insurance offerings. Not surprisingly, many of the trends to watch are driven by technology and connectivity.  Here’s a snapshot of three trends for 2018 that promise to be major factors in shaping the A&H industry:

1. Creating a one-stop member experience.
In our increasingly connected and rapid response marketplace, consumers have come to expect and demand streamlined service. To be able to compete with comparison sites such as Policy Genius or Compare Now, credit unions need to prioritize the capability to provide competitive quotes to members within a single phone call, visit, or online experience to stay competitive, add value, and grow member relationships.

2. The Internet of Things will further personalize pricing.
Smart devices have the potential to record data about everything from miles driven to acceleration and braking rates for drivers. In the home, smart thermostats and fire detection devices can help decrease risk of serious damage. These advances offer insurers the ability to provide better, more personalized pricing for policyholders in a way that is likely to end up costing the company less.

3. Momentum for ride sharing and autonomous cars will continue.
Major shifts toward ride sharing and autonomous cars are already driving insurance companies to update their products accordingly, such as pricing based on the number of miles a person drives or rides rather than a fixed monthly rate. As our daily routines evolve, expect continued and corresponding innovation in auto insurance offerings.

Are you prepared to better serve, retain and provide value to your members? As technology continues to change the way credit union members live, communicate, and do business, it's important for credit unions to stay relevant with their members' needs--especially when it comes to insurance.

For more of the latest trends to watch in  2018, download our infographic.