The holidays are (or should be) a time of joy, goodwill, and the restoration of family ties. But holidays and the insurance industry can be a strange mix. Those festive occasions can also mean longer hours at work and a flood of filed claims. On the upside, the holidays can also bring enhanced opportunities for revenue growth.
In short, almost anything can happen to keep insurance industry executives busy at the workplace instead of preparing for the festivities to come.
During the insurance busy season, which often coincides with typical holiday periods, you and your team in the insurance sector are likely to encounter the following challenges and scenarios.
Increased Travel and Its Implications on Insurance Claims
Your policyholders are going here. And there. Or staying put while extended family from all points of the map take planes, trains, and automobiles to join them for joyous holiday get-togethers.
Road travel can be perilous, especially during the winter holidays. Congested highways and snow, ice, sleet, and strong winds can cause crunching metal and an interruption of the festivities in a heartbeat.
If you handle auto insurance claims, the phones start to ring right at the worst time for business to take an uptick — when your employees are requesting vacation days, and their focus is on the company party and family, not necessarily on the job at hand.
It sounds like a downer to focus on this aspect of the holiday season, but pre-planning can help ease the burden. Consider hiring temporary help during holiday seasons and postponing vacations as much as possible. At the very least, alert your team to the possibility of increased claims during these times of the year so they can be prepared.
Seasonal Risks and Property Insurance
Lit candles bring to mind Christmas, Hanukkah, Kwanzaa, the Lunar New Year, and other holiday festivities. To insurance industry insiders, they also bring to mind images of fire engines, wailing sirens, and property damage claims. Embers thrown from a fireplace during winter gatherings pose the same threat.
It’s not only these end-of-year celebrations and observances that tend to include flames. Independence Day fireworks can cause injuries and property damage and bring calls to your agents and claims adjusters.
Holiday parties can also increase your liability claims action. Alcohol misuse might result in accidents and spur legal actions, triggering liability claims for your homeowners and renters insurance accounts.
Again, be prepared for times of the year when your claims action might escalate. If you have a newsletter or otherwise communicate with your property insurance policyholders, consider reminding them how to avoid holiday accidents.
Surge in Retail Activity and Commercial Insurance Needs
The holidays can mean big business for some of your commercial clients. That’s a very good thing — as long as they’re ready for the rush. Among other things, being ready means having the insurance they need in order to stay financially secure during these times.
Regardless of the lines of commercial coverage you offer, your business clients can have expanded needs during busy holiday times. And if they’re not thinking that far ahead, it’s your job to get them on board.
Have your agents review their commercial clients’ existing coverage and shortcomings. They should schedule meetings with those clients well ahead of the holidays. The purpose is to remind them of what their businesses might encounter and to explain the additional coverage that could be critical to the financial safety of their operations.
Seasonal Employment and Workers Compensation
Heightened holiday business means more workers. And that means an increased opportunity for accidents. Make a list of your commercial clients likely to hire seasonal help. This includes retailers, warehouses, courier services, and other types of businesses.
Many of these business owners are so involved with their day-to-day responsibilities that they’re not even thinking of their seasonal hiring needs many months ahead of the holidays. So that’s your job. Remind them what they’ll be up against and see how prepared they are for the inevitable boost in workers’ compensation coverage.
Can you get them better rates for their coverage? It could make a big difference to their bottom line if you can be the hero and find them cheaper options.
Cyber Risks During the Holiday Season
Cybercriminals never take a holiday. But they can certainly disrupt the seasonal festivities for your commercial clients.
There are several reasons for increased attacks during this time of the year. More employees might be on vacation, so there are fewer who are monitoring network traffic. And there might well be more activity to monitor. With more online shopping occurring during the winter holiday season, there’s more opportunity for data theft and other costly damage.
Strategies for Insurance Leaders to Prepare
If your company offers your commercial clients cybersecurity insurance or cyber liability coverage, remind them of the cyber threats the holidays can inspire and how to stay protected. If your clients don’t have such coverage, show them the importance of adding it, especially during busy holiday seasons.
In addition to the various holiday-oriented situations your policyholders might face, you’re likely to also have the challenge of maintaining leadership and motivation in the workplace during the holidays. We have insights to offer in this area of challenge, too.
Read More About the Insurance Industry by Visiting Our Knowledge Center
As the nation’s leading provider of personal lines insurance coverage, we make it our responsibility to keep our industry educated and informed. We invite you to visit our Knowledge Center for insurance industry guidance, trends, and insights.
You can also call us at (714) 252-2500 or drop us a line for more tips on surviving — and thriving — during the holiday seasons.
