Insurance business adapted well to the pandemic

Insurance companies have responded remarkably well to the pandemic and the consequential enforced lockdown with barely a blip. The final implications of COVID-19 for the insurance industry are, however, still unknown and will probably be for quite a while as a second wave of cases hits Europe.

AdvantageGo vice president and head of UK operations and international growth John Racher said, “Carriers that adapted their insurance business model or built flexibility within their structure will have gained a new resilience they are reluctant to lose.

In an opinion piece ‘The more things change, the more they stay the same’ published in Insurance Day, Mr Racher said five distinct areas have been impacted by the pandemic and which (he believes) require immediate and ongoing attention.

Mr Racher said, “Being prepared isn’t about deploying the latest software and praying that everything will be ok because your company has the smartest technology out there. It’s about having a 360-degree view of your organisation and reviewing each and every aspect, from your insurance underwriting system, risk portfolio, workforce, customer service, and digital proficiency.

He said, “While many companies accelerated their digital transformation projects this year in response to COVID-19, the pandemic’s impact has uncovered some serious digital vulnerabilities and gaps. With many countries in Europe and the UK enduring a second round of lockdown measures, the likelihood of offices reopening anytime soon remains slim.”

Mr Racher said companies that adapted and altered their course have been in a better position to weather the pandemic crisis. General Motors and Ford are one such example where production lines switched from assembling cars to building ventilators.  Although this is an extreme example of a company pivoting from its usual business during a crisis, there have been other cases of subtle tweaks such as clothing companies switching from making clothes to face masks, and restaurants providing takeaway meals for the first time.”

“While we are in no way advocating Insurers start selling anything other than insurance policies, what we have found, speaking to customers, is that a more agile workplace largely depends on the level of digital readiness and capability,” said Mr Racher.

Source: Asia Insurance Review