Matthew Turack, CAA Insurance Company
Matthieu Turack, President, CAA Insurance Company
The most important lesson the industry is really starting to respond to is that consumers want clear, solid advice that is easy to understand, and they look to businesses for that. We recently conducted research which showed that 53% of people find insurance policies difficult to understand. When asked who is best placed to teach individuals about the auto insurance system, insurers ranked # 1. We need to do more as an industry to make products and services simple and consumer-oriented.
People are looking for flexibility, so they have options to save money if their financial situation changes. Insurance companies have responded to this throughout the pandemic and it will continue. Consumers want to feel that insurance companies know about the big issues we are facing. Climate change and diversity, inclusion and belonging are two big ones.
The environment, social and governance (ESG) are becoming a key priority both for the structure and governance of the company, but also for product design. Customers are starting to expect insurance companies to be transparent about what they are doing in these areas. More and more companies will look for ways to implement eco-friendly practices and discount structures for customers who are doing their part. We start to evolve our products and services with a focus on how we can have a positive impact on the environment.
Continued rate relief will be needed in 2022 as we see inflation and the cost of living rise. Industry will be challenged to help in any meaningful way, whether through pricing, product, or loss prevention.
Driving habits will continue to change; the price of gasoline is going up and people are going to have to make choices. Our job in 2022 is to continue to help consumers get through this difficult time.