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Life post-pandemic offers new insurance opportunities

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As the nationwide mask mandate is lifted and we redefine what “back to normal” really means, some fads and habits during the pandemic have shown that they are here to stay. 

In the insurance market, in particular, we’ve seen a huge increase in investments in electric vehicle development, an uptick in company consolidation and acquisitions and even a boom of insurtech startups tackling climate change. Along with these changes, post-pandemic life has introduced opportunities for insurance providers that they couldn’t previously offer.

Growing demand for RV insurance

As remote and flexible work models have become a staple in the modern workforce, there has been a significant uptick in travel and being on the road. With Americans rediscovering their love for the great outdoors, glamor camping and road-tripping have become a great way to get the most out of nature. 

People have been turning to recreational vehicles to support their travel bug — not only can they park anywhere and camp with fellow campers in the great outdoors, but RV’s also eliminate the risk of staying in a hotel room or riding in airplanes. A recent study from Go RVing reported that 11.2 million households now own an RV, up 26% over the past 10 years. The first quarter of 2021 saw the most RV’s ever shipped in a single quarter and saw a 10% increase in sales over the previous record set in 2018. In fact, market researcher Technavio predicts almost double-digit growth for the RV industry year over year through 2023. The level of demand has led to some wait times stretching into fall 2022, and of course, all those RVs need to be insured by someone. 

Home-based business insurance 

Almost half of the 30 million small businesses in the nation are home-based (small businesses accounted for 1.6 million new jobs in 2020!), and the insurance industry has yet to adjust to the new home-based business momentum. According to a study conducted by AXIS, the company found that 44% of home-business owners do not have coverage or do not know what liabilities are covered by the insurance they have. 

While coverage within standard homeowners or general liability policy may cover some risks, there’s definitely a gap in what is covered and what’s not. Every small business is different, too, and has unique business insurance needs depending on the company. In response, companies like AXIS combined general liability coverage, professional liability coverage and crime coverage to offer tailored coverage that can align with any micro or home-based business. 

As the Great Resignation continues, it will be interesting to see if other traditional insurance carriers will adjust their small-business insurance offerings to fit this growing group of home-based businesses. 

Community-based climate insurance 

In places often exposed to natural disasters and climate change like California and Florida, getting the necessary insurance coverage at the right price isn't easy. Originally proposed in 2018, the California insurance commissioner introduced the nation’s first climate insurance law to protect the most vulnerable populations at risk. 

Instead of it being a policy for people to buy, climate insurance would be something for cities and governments to help communities who are disproportionately impacted rebuild. It would also offer those who invest in coastal marshes to get a reduced premium, to encourage residents to contribute to coastal wetland restoration projects. 

Currently, climate insurance is just a concept to get residents to do their part in supporting their community, but it also opens up a conversation about how different pilot programs could directly address climate change as it happens.

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Jasmine KimB2B Content Manager

Jasmine is The Zebra’s newsroom content writer. With a background in journalism, she reports on breaking news, trends, mergers and acquisitions, and financial reports related to the insurance industry.