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The insurance industry faced a mix of positive and negative events in 2022, with premiums increasing for both personal and business insurance due to rising interest rates, geopolitical crises, and natural disasters. However, many insurance organizations also made innovative changes to differentiate themselves and stay ahead of the curve. As we move into 2023, industry experts are predicting several trends that will shape insurance this year:

1. Social Inflation - Michael Fusco, CEO of Fusco Orsini & Associates, predicts that the biggest impact in the industry this year will revolve around social inflation, or the rising cost of insurance claims, particularly in the areas of liability and workers’ compensation.

2. Increased Carrier Rates - Carriers are expected to take a 10%+ rate increase in 2023, according to Nicole Gonzalez with ePayPolicy. David Carothers, Principal at Florida Risk Partners, also predicts, “we will continue to see more and more carriers require full financial underwriting”.

3. Price-Conscious Consumers - Robert Hartwig, President of Risk Management and Insurance at the USC, believes consumers will be shopping around for insurance more this year.

4. Investing in Customer Relationships - Michael Fusco believes that the technology that continues to evolve and enhance the client experience will have the biggest impact on the market. William Trainer with ePayPolicy, emphasized the importance of digital payment processing for customer retention as well as business efficiency.

5. AI Will  Become Mainstream - Companies are looking for ways to automate manual, labor-intensive processes. Mark Engels, CEO of ePayPolicy, predicts AI implementation will be seen across the entire customer engagement lifecycle.

6. Leveraging Partnerships - Strategic partnerships allow companies to collaborate and develop better customer-centric insurance solutions more quickly and cost-effectively. Ryan Bosworth, CSO of XDimensional Technologies, believes that roles will merge between agencies, MGAs, carriers, and other organizations in the hybrid world of insurance.

7. Resilience in the Industry - Despite economic challenges, Robert Hartwig explains that insurers are organized and regulated in a way that ensures they can continue to function normally even under the most stressful of economic circumstances. Hartwig believes that growth in the industry will slow but longer-term trends in the innovation and deployment of technologies will continue.

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This article has been summarized with the help of Chat GPT.

Read the full article here: https://epaypolicy.com/blog/insurance-industry-predictions-2023/