In this article, we will take a look at how our ever-changing lifestyles, along with additional environmental factors, are a calling for niche insurance. Whether it’s because our environment itself is changing or we are simply living differently, the insurance industry needs to recognise that these changes need to be reflected in what insurance policies are offered to consumers.
Traditional insurance offers millions of consumers a lot in terms of the standard requirements for an insurance policy, such as car insurance, landlord insurance and so on. However, what about those smaller areas that are currently losing out? The opportunities for niche insurance has been growing over the past few years and is expected to continue.
Niche Insurance Policies
So, exactly why are niche insurance policies needed? Traditional insurance companies offer traditional policies and don’t often delve into the smaller areas that need attention. The wider insurance industry is highly competitive so consumers tend to stick with the biggest brands out there that dominate the insurance market.
Niche insurance markets are there to provide policies to those who are affected by environmental changes, changes in lifestyle and the evolving risks that come along with it. Our wider society is changing yearly by third party influences of evolving technology so we must understand the ways we protect ourselves also need to adapt. Not only must we protect our lifestyles and physical belongings but also our businesses.
There are three main areas that the niche market needs to cater for and we will now examine why they are needed.
Lifestyle Changes, Insurance Changes
As our lifestyle and habits continue to change the niche insurance market must start to cater for them. With the rise of social media platforms and other contributing factors, consumers started purchasing experiences rather than physical belongings. Check this out. This change could have occurred for a number of reasons – influential social media, reduced disposable income and therefore being accepted for loans decreased.
Even how we travel has adapted during the twenty-first century. We are now, more than ever, purchasing hotel stays online and booking taxis and car shares via apps. These two examples alone show the importance of improved and updated insurance and insurance software. One of the most popular car sharing apps that enables you to book a journey to almost any location is Uber. Despite Uber refusing to label themselves as a private car company, the drivers are still required to have liability insurance. More information here.
SME’s, Technology & Cyber Security
As cyber crime has risen considerably over the past few years, it’s shocking that figures show 75% of UK SMEs are still unprotected against any cyber-attacks or IT systems failure. With a cyber-threat at every turn, small and medium sized businesses in particular should take extra care, considering that an attack could cost their business of around £100,000 in damages. This kind of threat is enough to bring most SMEs to their knees in crippling damages as well as damage to their reputation.
With so many known brands and companies being a victim of cybercrime and even the USA Presidential Election allegedly being hacked, nothing is safe, so businesses need to stop thinking lucky and that it won’t happen to them.
The risk to SMEs who don’t have the correct amount of cyber security is indescribable and, for this, the industry and business owners shouldn’t continue ignoring this type of threat.
You can read more about cyber crime liability insurance at http://www.computerweekly.com/news/2240202703/An-introduction-to-cyber-liability-insurance-cover.
Specialised Environment Policies
With climate change currently being a key focal point among news stations, society is aware of most impending natural disasters that could occur. Impacts and threats to the environment isn’t something that can go ignored. Over the past recent years the UK has had an overwhelming amount of floods and more than their fair share of natural disasters. Hundreds of homes were hit several times within the space of a few years and this is creating a huge demand for specialised insurance that will cover people in times of environmental related incidents.
People who are effected by climate changes and environmental threats should be helped by niche insurance markets. Insurance policies should follow suit of FloodRe who are a non-profit scheme that will help those affected by floods. The insurance industry is in demand for more ethically-driven ideas that help people cope within times of desperation and losing their valuables.