Insurance Trends 2022

Insurance Trends

Quotetopia follows insurance … closely. It is our passion and our craft to keep up with changes in the industry to find you better options for a changing world. In this annual report, we look at how things are changing and how it may affect you.

Auto Insurance Trends for 2022

The national average cost to insure a car is expected to rise 5% in 2022 to just over $1,700 annually due to an increase in risky driving combined with the effects of supply chain disruptions and inflation. However, insuring an electric vehicle is expected to get cheaper.

As supply chain disruptions have driven up the prices of new cars, insurers are required to anticipate those rising costs of replacing vehicles, contributing to rising costs this year. Credit score has become more heavily considered in recent years and now out-ranks at-fault accidents and rivals DUI for affecting premiums.

Where you live also affects your auto insurance cost. In 2022, Michigan is the most expensive state in which to insure a car at around 260% of the national average cost. Conversely at 44% below the national average, Wisconsin is the cheapest state in which to insure your vehicle.

Consumers will see protection in 2022 in the form of continued focus on discriminatory pricing practices like using gender to calculate risk. Several states have banned these practices and this trend is likely to continue. However, consumers will also see an increase in the amount of data about their driving that is available to courts, police, and insurers in the event of an accident. Increasing and more sophisticated onboard sensors, computers, and telematics will make assigning fault in accidents easier and more accurate.

During times of rising premiums, ask about ways to control costs including usage-base policies (if you don’t drive much) or good driver discounts if your record is clear. Be sure to also ask about discounts for multiple vehicles, homeowners, married couples, military and veterans.

Health Insurance Trends for 2022

Health insurance premiums for employers have been increasing and are forecast to increase by 8% more during 2022. This cost escalation has caused some employers to offer less in benefits coverage or to cover a smaller portion of the premium for the employee. This trend has begun to make shopping individual health insurance sensible even for some who have the option of insurance at work.

2022 will see the health insurance industry resume normal cost increases after a one-year slowdown in rate hikes stemming from the massive drop in elective medical procedures brought on by the pandemic. Last year’s cost increases were the lowest in thirty years but are now a fluke unlikely to be repeated soon.

Customized formats of insurance policies are being explored and may gain prominence during 2022. For example, one insurer is piloting an insurance policy specifically for people who prefer to see their doctor “online first”, going in person only later and only if a health matter necessitates an in-person visit. The cost of this healthcare is lower and insurers look for opportunities to cut premiums by cutting costs.

This year will also see a continuation of the recent trend of expanded benefits or at least easier access to mental health resources available in plans. The pandemic has driven mental health care and has driven it largely online. Many plans have used this time to remind policyholders of their mental health benefits and in some cases to heighten those benefits.

Life Insurance Trends for 2022

The Covid-29 pandemic caused a spike in demand for life insurance policies. This sudden immense growth required insurers to automate and put online more of their processes for contactless interaction.

We also expect 2022 to see a continuation of the emergence of blockchain technologies (which originated with cryptocurrencies) to be used for highly private storage of policy information and eventually to enable policy sharing and policy acquiring.

Life insurance costs will continue to rise but obtaining coverage younger is the best way to control costs. For men in particular, the cost of life insurance rises by nearly 300% between ages 25 and 50.

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