Business and insurance trends for 2021

Our business and insurance landscape has changed dramatically over the past 12 months, making way for some significant new trends and opportunities. 

Efforts to contain COVID-19 and minimise the death toll resulted in unprecedented restrictions on movement and trade throughout 2020 and forced many businesses to pivot.

And while the roll-out of a vaccine is predicted to be the silver bullet for some of our problems, savvy businesses in 2021 will still need to adapt and change to meet the lingering impacts and changes in consumer demand.

There are some big business trends predicted for 2021, including;

  • A focus on improving cybersecurity. Cyber-attacks increased dramatically in 2020 and this year will be the year to improve your online security and take out that cyber insurance policy.
  • Formalising and structuring flexible work arrangements. Remote working became the norm in 2020 and many employees will be looking to retain the flexible working arrangements. This year it will be important to formalise these new arrangements and understand the impact on your business risk management profile – in some cases you may need to increase your business insurance cover and/or notify your broker of the change in circumstances.
  • Improving online sales channels and communication. Increasing online transactions comes with some added risks. Make sure your business policy is updated to include online trade to ensure you’re covered for things like damage to goods in transit, lost orders and cyber interventions.
  • Reconnecting with clients and colleagues. Many workplaces will be looking to resume face to face contact, either through specific events or sending staff back out on the road. Talk to your broker to make sure your staff are covered with domestic travel insurance and that you have the appropriate events insurance in place.
  • Maintaining positive hygiene habits. The new focus on hygiene will continue for the foreseeable future, which means this year will be about maintaining and creating new standards.
  • Future-proofing businesses with online services. Ensuring your business can still operate online is going to be a big focus in 2021.
  • A shift from global to local buying. With international borders still restricted, there is a big opportunity to create local jobs and locally produced products.
  • Acceleration of social enterprise and for-profit businesses that solve global problems of waste, climate change and social inequity. The big problems in the world haven’t changed and there is a growing appetite and momentum for businesses that make a difference.

There are also some significant changes predicted for the insurance industry this year including;

  • New on-demand insurance products
  • Push for consumers to pay for niche insurance sectors and risks (e.g drones, robotics, cyber)
  • Tightening of conditions and exclusions
  • Increases in premiums across all sectors

With the insurance market hardening and evolving, 2021 is definitely the year to put a risk management strategy in place to ensure your future success.

Allsafe Insurance Brokers can take the guesswork out of risk management by putting in place a program of insurance to protect your assets and income. We offer a wide range of products and services for residential, commercial and industrial enterprises. Contact us today.

 

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