If you think about personal insurance simply as something that steps in when something bad happens, it might be time to think again.
Insurance is changing, offering new opportunities for those who use it.
For a long time, personal insurance was there primarily to swing into effect when something happened.
A life insurance policy would pay out when someone passed away, and an income protection policy would help if they were unable to work.
While those policies still remain a vital part of many people’s insurance portfolios and provide an invaluable layer of risk protection, the industry is shifting its focus to a more holistic one.
Keeping you healthy
Many insurers are now offering policies that are designed to help keep you healthy, rather than simply stepping in when things don’t go to plan. There are several insurers in New Zealand offering wellness plans that incentivise activity and eating well, and this is a trend that is tipped to grow.
Research from McKinsey & Co suggests the increasing prevalence of data in our everyday lives could help drive the effectiveness of insurers’ health and wellness efforts. The researchers said people were more open to this after the pandemic.
They said things like smartwatches would help insurers play a more active role in helping their customers live healthier lives, which should benefit everyone.
They would be able to use some of this data to offer people things like personalised reminders or notifications about their diet, local health resources they could tap into, or their physical activity.
There are also a number of insurers now offering the sort of policies that support people to undertake regular checkups and other preventative treatments to stop conditions from developing.
Catering to different expectations
As Financial Advice NZ chief executive Katrina Shanks points out, the pandemic has also made many people more proactive about their personal and mental wellbeing, and they’re starting to expect their insurers to care more about their wellbeing, as well as just being there when things don’t go to plan.
She says insurers, and insurance advisers, with their knowledge of clients’ needs can not only help these people protect their financial futures but help them on a path to better physical and mental health.
Caring for customers
Insurers are also taking steps to identify customers who might need more support put around them.
These are people who, due to a change in circumstances either temporary or permanent, might require extra support or attention.
Insurers will often introduce systems of care around such customers so that they do not end up in a situation where they are forced to cancel their policies and left uninsured.
Like to talk?
If it’s time for a fresh look at insurance, give us a call. We can tell you how things are changing, what might be on offer, and how that could work for you. Insurance isn’t just there to pick up the pieces when the worst happens but can help you to get more out of your everyday life.
Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current developments or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek independent guidance.