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5 New trends that will shape business insurance in 2022

Thursday, February 17, 2022

In a post-pandemic world, where the demand for insurance is expected to keep rising, all insurers, will be challenged to reconsider how they interact with customers, distributors, investors, and other key constituencies. This article explores the five trends that will shape the landscape of the South African Business Insurance industry in the coming year. Let's discuss what is meant by Business Insurance and why you need insurance for business.

What is business insurance and why do you need it?

 

Whether you are a small, medium, or large organisation, there are certain risks that nearly all businesses are exposed to during the course of their normal activities. These risks may include lawsuits, property damage, theft and vandalism, loss of income, employee injuries, and illnesses. Business Insurance helps protect against these unforeseen events that could result in significant financial losses.

The types of business insurance you should know about

 

There several different types of Business Insurance available, some of which include:

  • Liability Insurance

Liability insurance policies provide an insured party with protection against claims resulting from injuries and damage to other people or property.

  • Business Interruption

Insurance Business interruption insurance covers the loss of income suffered by a business due to a disaster-related closing or due to the rebuilding process after a disaster.

  • Workers' Compensation Insurance

Workers' compensation insurance provides cover for any occupational illness or accident that arises during employment and results in incurring medical expenses and loss of income.

  • Commercial Property Insurance

Commercial property insurance will cover any equipment, signage, inventory, and furniture that has been damaged or lost in the event of a storm, fire, or theft.

  • Commercial Vehicle Insurance

Commercial auto insurance, like 10-ton truck insurance, helps cover any vehicles used for business purposes, such as cars, trucks, and vans. Commercial auto insurance covers vehicle damage and driver injuries. For more information about the full range of options available, take a look at our comprehensive article Breaking down Business Insurance.

H2: Top 5 Trends impacting the insurance industry

 

1. Climate change and sustainability

Climate change and sustainability* profoundly impact the global insurance sector for multiple reasons. With the number of natural disasters, such as floods, wildfires, droughts, storms, and earthquakes, steadily increasing over the previous decades, climate change has exposed some insurers in the wake of rising catastrophe claims through natural disasters' impact on businesses. The systemic nature of climate risk highlights the need for global collaboration among insurers. Insurers need to study climate risks to better understand them and provide customers with the best solutions.

2. Accelerated Growth Expected for the African Insurance Industry

According to a recent report by McKinsey and Company*, economic growth across Africa is reshaping the continent’s historically underdeveloped insurance industry, charting the course of the market’s development and the prospect for remarkable expansion of the sector. The African insurance market is currently the second-fastest-growing insurance market globally, and before the Covid-19 pandemic was expected to grow at 7 percent per annum between 2020 and 2025. Although the pandemic has toppled commercial and consumer discretionary spending, including insurance, the report hypothesises that although the pandemic has resulted in, it will not alter Africa’s insurance growth patterns and will undoubtedly accelerate the shift toward digital and remote platforms.

3. Insurance Implications of Remote Working

Over the past two years, companies have seen a dramatic shift towards remote working and hybrid workspaces. This trend has triggered a global discussion regarding the challenges and opportunities employers and employees face. On the whole remote working provides an exciting opportunity, offering greater flexibility to employers and employees alike. However, considering that many companies may have developed remote working policies at short notice and under a great deal of pressure, they are in many instances still playing catch up on some of the operational considerations arising from this new working model. The fact of the matter is there will be insurance implications associated with remote working. The best advice when it comes to insurance is always to call your insurer when in doubt.

4. Transformation Through Technology

Emerging technologies and innovations are beginning to transform the insurance industry and for the better. New technologies create novel ways to assess, manage and price risk, reduce costs and ultimately expand insurability. In essence, these innovations will reinvent the insurance industry.

5. A New Generation of Entrepreneurs

The global pandemic has brought about a real boom in entrepreneurial endeavours, as the number of new companies worldwide has significantly surpassed last year's indicators. Such a surge in entrepreneurship is has been attributed to people who have seen opportunities and have started their own businesses, which will require business insurance. Entrepreneurs walk on the edge during their entire professional life. Hence, getting insurance for entrepreneurs is not a life choice but a necessity. From securing dependents to shielding the organisation from unforeseen events, insurance becomes a buffer against significant risks. Dialdirect is committed to forging lasting partnerships to protect you and expand your risk profile. Our extensive portfolio includes a wide range of commercial cover for small, medium, and large organisations.

Get a business insurance quote from Dialdirect

 

Dialdirect is a leading South African insurer. Make sure your business is adequately protected and properly insured. There’s a product out there to suit your individual business needs. Request a free business insurance quote. We have a quick, hassle-free online process for your convenience.

Sources:

News24 - Five words marked 2021 for world stocks and may do it again in 2022 McKinsey & Co - Africa’s insurance market is set for takeoff