Insurance industry predicted to see boom following COVID-19
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The business world is currently split into two entirely different camps. On the one side, you have companies and industries that are badly hit by the ongoing pandemic. This includes the travel industry, traditional retail, hospitality, and more. These industries and businesses have either completely ceased operations or are working on a heavily revised schedule. It has led to a significant lack of profits and heavy losses.
On the other side, you have industries that are booming as a result of COVID-19. Online retail is one, but the focus of today’s post is the insurance industry. Businesses in this camp have seen an increase in business, largely brought about by changing consumer habits during a pandemic.
The interesting thing about the insurance industry is that it was initially badly hit by COVID-19. A lot of companies stopped selling insurance due to numerous claims relating to the pandemic. Now, things are starting to turn the corner, and we think we can see why…
Back in business
Obviously, at the start of the pandemic, most businesses shut down their operations. Certainly, many industries were no longer working. As a result, they didn’t need any insurance, so policies were cancelled, frozen, or not renewed. Now, businesses are slowly returning and people are working once more. Naturally, this means the demand for business-related insurance products is on the rise once more.
Decreased travel restrictions
Similarly, many travel bans and restrictions have been lifted. In the UK, you’re now able to fly almost anywhere in Europe without worrying about quarantine rules. Naturally, this has increased the demand for travel insurance once more. Especially seeing as there is a risk that plans can change and flights might get altered or cancelled at the last minute. Obviously, when no travel was permitted, and planes were grounded, there was zero demand for travel insurance. As soon as restrictions were lifted, you saw an increase in people looking to go away on a short holiday. Hence, business in the travel insurance sector went up.
Increased sense of worry
Finally, the key reason for a predicted insurance boom is the newfound sense of worry or caution a lot of people have. Typically, insurance includes a lot of add-ons. As you can see here, something like Tradesman Insurance has public liability cover, plus extra for tools, etc. Before the pandemic, people and businesses may have been inclined to opt for cheap insurance that had minimal coverage, just to save money. Now, people are more worried than they used to be – especially from a business perspective. If you have been out of action for months, you can’t afford to let anything cause any more financial distress. As a result, you’re more likely to choose insurance packages with lots of extra coverage just for the added protection. The same goes for members of the public with travel or home insurance – there’s more value on things nowadays, so you want the most protection possible. In turn, this boosts the insurance industry as more money is spent on products.
Of course, this is just a prediction based on the current habits in the insurance market. Things could change, meaning the market goes bust. Nobody really knows what will happen in today’s uncertain world, but it is helpful to see that some industries may be on the up.
