If you have a house, car, job, business, valuable asset, or rent a space, chances are you have some kind of insurance. Insurance is something that most people deal with at some point in their lives, and entrepreneurs are no different. But like most industries, the insurance industry has changed and evolved with the changing needs of its customers and the world around us.
Insurance is important for many reasons as a business owner, but the key reason for insurance is to provide protection against theft, damage from events like fire and water, and financial responsibility that could result from a visitor or guest being accidentally injured on your property. Without insurance, the costs resulting from these situations fall on the business owner to cover, which could leave some people in a dangerous financial situation.
Many entrepreneurs take out varying types of private insurance in BC for their business from liability and life insurance coverage to property damage coverage, so it is important to stay up to date on the latest insurance industry updates. Below are some trends that affect insurance for Canadian entrepreneurs:
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Changes to Liability
Globalization, outsourcing, shifts in legal trends, and technological advances are all factors that contribute to complications in liability. Many cases are no longer black and white, and claims are now more frequent and severe. This means that many entrepreneurs need to work with their insurance providers to reassess potential exposures, review their coverage limits, and update their risk mitigation strategies.
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Climate Change
As climate change progresses, we are seeing an uptick in climate-related events such as wildfires, tropical storms, tornadoes, and flooding. The increase in intensity and frequency of these events cause an increase in insurance claims, which impacts the insurance industry greatly. Entrepreneurs who are looking to protect their employees, goods, and property can feel better knowing that their insurance providers are tracking these climate change trends and insurance products are being adjusted to meet changing needs.
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Big Data
In today’s economy, companies are collecting more and more personal data from their customers in order to provide a better experience. The insurance industry is no different, and big data is changing the way your insurance provider can estimate your needs and provide more accurate quotes. In exchange for a small amount of personal information, your insurance provider can create a unique experience that is tailored for you and your business.
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Autonomous Vehicles
If your business uses company vehicles, your auto insurance will be impacted by the rise of autonomous vehicles and other self-driving features. With the rise of self-driving cars and increased computerization, companies will need to change the way they manage and ensure their fleets, not to mention protect them from cybercrime. This new trend also changes the way liability is determined, with many policymakers still figuring out how these vehicles will operate on the roads. All of these factors are bound to change insurance coverage in the long term.
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Sharing Economy
Over recent years, we have seen businesses such as Uber, Airbn,b and other companies intended to help people share their goods and services with others. This new way of doing business brings new risks, and therefore different kinds of insurance products are needed. This trend forces entrepreneurs to focus on liability for property damage and compliance with local regulations to help keep everyone on all sides safe. Having an insurance provider who understands this new trend can be very beneficial in setting yourself up for success and security in the future.
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New Technologies
Technologies are changing every day, and new technologies are impacting the insurance industry in a major way. First, smart sensors and the internet of things can help to monitor and alert in case of an emergency situation. Wearable technologies are especially helpful in keeping workers safe, productive, and potentially free of liability. Second, the advances in web industries and collaboration tools help many clients interact with their insurance providers in new ways to increase customer satisfaction. Lastly, technologies such as artificial intelligence can help businesses optimize their processes, but need to be correctly insured to protect against any liability-related vulnerabilities and gaps.
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Customer Experience
The customer-business relationship is changing fast, and customers have many different expectations when they interact with a business now. From wanting to do business via web chat and email to getting quotes within seconds on a website, customers are looking for a tailored, efficient, and convenient interaction. This major trend has insurance companies offering online quotes and claims, as well as making themselves available to clients around the clock via a number of different platforms. Not only can this provide faster and more efficient service, but it also leaves many customers more satisfied with their overall experience.
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Cyber Security
Ten or twenty years ago, businesses didn’t have to worry as much about hackers or data loss. Fast forward to today and cybercrime is a huge risk to many businesses and their clients. Data breaches and theft of personal information can be a huge liability for business owners, so their insurance providers have begun to provide new products just for these circumstances. As the risk of cybercrime increases, the insurance industry will change and adapt to meet all of the new requirements of their clients.
Global trends are changing things rapidly, and the insurance industry is working to adapt to these trends and the new requirements that they present. If you are wondering how these trends may affect your business and insurance products specifically, our team is happy to help. Contact us to learn more today!
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