As the world and different industries are struggling with their ways of coping up with the situation of a global pandemic of COVID19, the insurance industry encompassing the insurtech companies, insurers, brokers, and agents are staggering its way forward to an uncertain future. The Insurance industry is one of the crucial domains to be impacted by the hit of the economic slowdown that followed from the mandated lockdown to keep up the measure of social distancing to contain the deadly virus.
One can imply that the post-COVID19 period would not mark growth in a straight trajectory and as a result, the linear and conventional efforts of insurance providers, brokers, and agents to accelerate growth would also need a complete transformation to improve results and recovery. The industry incumbents need to devise two broad strategies, one for how to survive the current risk and second, how to thrive in the altered tomorrow! Let’s discuss these two in brief further.
1. Calibrating Insurance Industry Against COVID-19
As the measure of social distancing became necessary for all, many of the processes of the insurance industry are striving for a balance in maintaining the Business Continuity Plans (BCP) in place. Insurance technology is acting as the real strength to keep insurance businesses alive in remote-working environments by meeting security requirements for the insurers, brokers, and agents as well as assuring continuity in operations. Another call to action for insurers is to service empathetically to serve the customers who are all facing the outcomes of the pandemic in different ways.
Even if there are no straight forward solutions to the challenges put forward, listening to the Voice of the Customers (VoC) would act as a remedy for insurers. Lastly, the process of insurance marketing is largely based on face to face contact and personal bonds which cannot be achieved at the moment but it could be replaced with a better technological “people-first approach” leveraging the capabilities of the Insurance software.
2. Preparing for the New Horizon
The insurance industry must devise strategies to better envision its efficiencies post-COVID19. This will require strategic planning by leveraging the new-age technological transformation. The insurance incumbents need to audit their core technological capabilities to keep up on the tracks of time. The best way forward would be harnessing the potential of Cloud-hosted apps and advanced analytics to achieve seamless collaboration and superior customer experience.
To thrive in the post-pandemic era, the insurance industry needs to build confidence across the length and breadth of its value chain by leveraging the capabilities of new-age technology such as RPA, AI and Machine Learning (ML). The long-term goals of insurers should be centered on balancing capital expenditure with technology investment to accelerate the growth trajectory.
The insurance industry is revolutionizing itself with the new realities of a different future for the post-COVID world emphasizing building their foundations strong in the storm of this pandemic. This foundation would be the trust in their capabilities today and preparedness for a better tomorrow. As a leader in insurtech companies, Damco is working as a navigating force for the insurers to achieve sustainable and long-term growth in the future. To gain practical insights to emerge stronger from Covid-19 crisis, do access our detailed report on Beyond Covid-19: Imperatives for the insurance industry for the new horizon.