More than half of UK employees did not believe they would return to in-office work full time in 2022, according to a survey by GlobalData. The leading data and analytics company notes that increasing consumer demand for flexible working models will present both challenges and opportunities for insurers moving forward.
GlobalData’s survey, conducted as part of research for its Insurance Intelligence Center, indicates that only 40.4% of those surveyed anticipated a return to the office in 2022. One of the pandemic’s most significant long-term repercussions is the transition to remote working in 2020, which shifted working to a hybrid/flexible approach in 2021 and beyond.
Guillaume Anns, Associate Insurance Analyst at GlobalData, comments: “Around a third of employers adopted a hybrid working model in 2022, an increase from 2021. Staff are demanding flexibility, making working full time in an office environment a less viable option. With the incoming recession likely to put further pressure on expenses, more businesses are likely to scale down and reduce their insurance cover in the process.”
However, the change in the nature of office labor also represents an opportunity for insurers. There will be greater prospects for new companies because so many businesses are wanting to relocate their offices to save costs and scale down.
Anns continues: “Instead of renewing with their present carrier, moving companies will likely look to evaluate their insurance options.”
GlobalData research also reveals that some businesses are valuing flexibility more now than they did before the outbreak due to the economic challenges. Some businesses sought rolling, one-month rental agreements during the height of the pandemic to lessen the impact of lockdowns on employee attendance. Further, insurance companies might provide plans to businesses seeking this flexibility, given the general outlook for the overall economy in 2023.
Anns concludes: “Overall, if businesses decide to scale down and lower their cover, due to changes in workplace behavior, it will deliver challenges for insurers. Businesses wanting to relocate will likely review their insurance options rather than renewing with their current provider, given tightening budgets for 2023. As a result, there will be additonal pressure for insurers to meet the needs of these consumers if they want to retain them.”
