Around the world, restrictions that were put in place to contain the spread of Coronavirus (COVID-19) have started to relax. For many businesses, including insurers, the focus has shifted from dealing with the immediate crisis to considering how to transform operations, risk management, customer demands and employee safety for the 'new normal'.
We have surveyed our most senior clients at local and international insurers and intermediaries to understand what implications lie ahead for the insurance industry.
The insurance industry is not immune to the challenges arising from COVID-19, including disruption to traditional methods of consumer engagement and revenue streams.
However, mass disruption brings opportunity - insurers planning for the recovery from COVID-19 should focus on building consumer confidence and consider exploring alternative or unconventional channels to engage with consumers in the post COVID-19 world. This will assist insurers in demonstrating value to consumers and may provide a competitive advantage during the recovery phase.
In Australia, the insurance sector was already under the regulatory microscope before the outbreak of COVID-19.
However, the widespread impact of COVID-19 has certainly tested the social contract between insurers and their customers, which gives regulators a different lens through which to scrutinise the sector.
In the current pandemic context, the value of insurance and the role played by insurers in society is being increasingly questioned by customers and regulators protecting customer interests, which may lead to unprecedented levels of regulatory intervention and supervision of the sector.
We are very keen to receive your feedback on the results we have documented.
Please get in touch with Avryl Lattin and Dean Carrigan if you are experiencing any of the predicted scenarios or conversely, if you are seeing anything that is very different.
Download the report here
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