COVID-19 continued to dominate the industry in 2021, but this was linked to other developments: Insurers are prioritizing wellness, taking a more holistic approach to eldercare and, underlying it all, continuing to shift to the digital space. We round up the trends to watch.
Leigh Allen, Associate Vice President, Strategic Survey Research, RGA
RGA conducts surveys to help insurance leaders understand the past and prepare for the future. Explore the full findings from the 2021 survey portfolio here ».
INCREASE IN CLAIMS DUE TO COVID-19
In addition to the financial impact and business continuity plans, other challenges fueled by the pandemic have forced insurers to adapt. These include claims processes and requirements. There was a significant increase in claims, primarily attributed to mortality benefits followed by health and disability income benefits.
Claim processing also saw changes due to COVID-19, with average end-to-end time increasing from 34 days pre-pandemic to 43 during the pandemic, highlighting the need to explore additional solutions to ensure better consumer experiences.
70%
of respondents reported an increase in the number of claims they managed
DEALING WITH THE CHALLENGES OF AGING
Many insurers report reaching beyond assisted living and care policy benefits to promote healthy living and “aging in place”. These offers go beyond physical support, with a growing emphasis on mental and financial wellbeing – for instance, by targeting social isolation.
The focus remains on offering affordable products and good coverage as the cornerstone of eldercare. Just like in all other areas, the shift to the digital space continues, with 44% saying they’ve prioritized initiatives to focus more on virtual-care technologies.
PRIORITIZING WELLNESS
Wellness programs or initiatives accelerated for many insurers during the pandemic. The emphasis is on motivating healthier lifestyles and preventing and managing chronic conditions.
Almost three quarters of insurers (71%) report offering traditional wellness-related products like gym memberships or nutrition programs, while more than half (54%) also offer newer initiatives such as mental health platforms, services or tools, including on-demand mobile and web-based support and counselling.
85%
of life and health insurers prioritized wellness after the onset of the pandemic
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