The year 2010 was considered as a defined year for the US insurance industry. There were enough ripples created in the insurance industry with the ULIP controversy, IRDA versus SEBI fight and argument over the cashless insurance scheme. An increasing number of people who were made aware of their personal financial condition and the downsides of not getting an insurance policy were forced to get their policies so that they do not incur unnecessary debts and spend time reading a debt consolidation blog. There have been certain changes in the insurance industry and the insurance experts have predicted certain trends on the insurance industry. Read on to get an overview of the changes to the US insurance industry and some predicted trends for 2011.
What were the changes in insurance plans in 2010?
Within the last quarter of 2010, there were far-reaching changes in the ULIP plans made by the IRDA. As IRDA capped the rates, elongated the minimum period and also assured maximum returns on insurance investment, the ULIPs became more stable than before. There has been a sustained discussion on providing more autonomy to the banks so that they could easily act as an insurance agent for promoting products from various insurance providers. Though this decision has not been taken as of yet, but it is soon to come into effect within the first three months of 2011.
What are the predominant insurance trends in 2011?
The changes mentioned above in the year 2010 have already set a clear path for the insurance trends for 2011 and beyond. Have a look at some such trends in the respective insurance industries.
– The life insurance industry
The aforementioned changes in the ULIP will make it more sought-after in the year 2011, however, there is a slight possibility that the insurance providers may revert from selling ULIPs and ask them to get back to their traditional life insurance policies. The whole life insurance policies, money-back plan and the endowment plan will gain more significance in 2011. The term life insurance policy may get cheaper making it affordable among most US consumers. Apart from this, the banks will certainly increase their focus on the insurance industry.
– The medical insurance industry
With the surging medical costs, the cost of medical insurance will also go up. Both in domestic areas and overseas, there will be a huge competition in the health insurance industry as there will be some new plans coming in. Despite the initial high rates, the rates will go down in the long run. Consumers are advised to be aware of such insurance policies where you’re being offered unnaturally low premiums.
– The auto insurance industry
The auto insurance industry will see some new players again in 2011. There will be a rise in the demand for comprehensive package due to the increase in the number of vehicles on the roads. You must highly focus on getting a comprehensive auto insurance package.
You may also consult advisors for a reputed and really cheap auto insurance. If you’re a careful driver, you can surely boost your deductibility and lower the premium rates on your policy.
Getting an insurance policy is a prerequisite for people to safeguard themselves from incurring unnecessary expenditures. Not having an insurance policy may get you into serious financial trouble where you may have to go through a debt consolidation blog to get rid of your multiple debts. Educate yourself on the predominant trend in the insurance industry so that you can take an informed and a measured decision while getting a policy.
Angela B. is a contributory writer associated with a really cheap auto insurance community and has written several articles for various financial websites. She holds her expertise in the insurance industry and has made significant contribution through her various articles.
