What’s changing in insurance this year? We look ahead at the latest trends and how shifts in the industry may affect you.
As 2024 unfolds, the Australian insurance landscape is being reshaped by innovative technologies and a growing focus on environmental sustainability. Here we highlight some of the key trends in home and car insurance for the year ahead.
Home Insurance: Embracing Technology and Sustainability
Rise of Smart Home Technology
The integration of smart home technology in insurance policies is a small but growing area, with some providers offering discounts on premiums to homeowners using the tech or even subsidising installation. This is because smart devices offer enhanced home security and can reduce claims due to their risk-lowering capabilities. Experts say you can expect to see more insurers incorporating similar technologies into their home contents insurance policies by the end of 2024.
Focus on Climate Resilience
With extreme weather events becoming more frequent, insurers are increasingly focusing on climate resilience. Homeowners are encouraged to adopt protective measures against environmental threats, with the potential benefit of reduced insurance premiums for implementing certified climate-resilient improvements.
Car Insurance: Adapting to New Realities
Usage-Based Insurance Gains Traction
The motor insurance sector is seeing a significant shift towards usage-based insurance models like 'pay-as-you-drive'. These models offer personalised premiums based on individual driving behaviours, signalling a move towards more tailored and flexible insurance options.
Adapting to Electric and Hybrid Vehicles
The growing market share of electric and hybrid vehicles is prompting insurers to develop dedicated policies. These vehicles' unique maintenance and repair requirements necessitate bespoke insurance solutions, with 2024 likely witnessing the launch of EV-specific policies.
AI and Digital Transformation
AI and digital technologies are transforming insurance processes. These advancements are expected to streamline claims processing and enable the creation of more personalised insurance products based on data analysis.
Emerging Trends in the Insurance Sector
Increased Focus on Mental Health Coverage
There's an emerging trend in the insurance industry towards covering mental health. This includes policies offering benefits for mental health services and support, reflecting a broader societal recognition of mental health's importance to personal wellbeing. In recent years there’s also been an increase in insurer wellness programs that reward you for proactively making healthy life choices.
Cyber Insurance on the Rise
With the increasing threat of cyberattacks, cyber protection insurance is becoming more prominent. Businesses and individuals are seeking protection against digital risks, leading to a growing market for cyber insurance policies. Read our blog on Cyber Insurance for Small Businesses.
On-Demand Insurance Models
On-demand insurance, where coverage is activated and paid for as needed, is gaining popularity. This model is particularly appealing in the gig economy and for younger consumers who prefer more control over their insurance costs.
The insurance industry in 2024 is undergoing significant changes, driven by technological innovation and an increasing emphasis on environmental and mental health issues. From smart home technology to bespoke policies for electric vehicles, and the rise of on-demand insurance models, the sector is adapting to meet the evolving needs of consumers.
Want to make sure you have the best insurance coverage for your needs? Call us anytime on (02) 8268 2900 for an obligation-free chat. We’re always here to help.
Disclaimer: The information contained in this article is general in nature and does not take into account your personal objectives, financial situation or needs. Please consider whether the information is appropriate to your circumstance before acting on it and, where appropriate, seek professional advice.
SOURCES:
https://mozo.com.au/insurance/home-insurance/articles/2024-home-insurance-trends
https://mozo.com.au/insurance/car-insurance/articles/2024-car-insurance-tends
