Business
Three key ways insurers can come out of the pandemic stronger
Three key ways insurers can come out of the pandemic stronger
Published by Jessica Weisman-Pitts
Posted on February 2, 2022
Global Banking and Finance Review
Company
Published by Jessica Weisman-Pitts
Posted on February 2, 2022
By James Harrison, Head of Insurance at Dun & Bradstreet
To say the last two years have been a challenge for the insurance industry would be an understatement. And, while it can be argued that they’re in the business of helping customers navigate difficult times and protecting them from financial loss, who could have foreseen this global pandemic?
After all, insurance is a risky business in its own right and, with new technologies evolving customer expectations and a growing demand for personalised services, the industry is in a constant state of flux.
Add into the mix the growing challenges facing businesses in every sector, the demands on insurers to help to keep the country’s economy afloat is exponential. In fact, in September 2021, it was found that small companies in the UK received $1.4 billion in full and interim business interruption payouts since the pandemic began – all of which was straight out of the pockets of insurance firms. Inevitably, this extraordinary figure would have put insurers continuity plans under increasing pressure.
In this article, I’ll be exploring the three key ways they can come out of the pandemic stronger than before.
Digital transformation is revolutionising all industries and the insurance sector is no different. To sustain growth and keep up with higher customer expectations as we transition out of the pandemic, the industry must undergo continual digital transformation.
The onus is now on the industry to invest in digital technology, enhance operational efficiency and move forward as one. Implementing these changes will help to reduce cost and time-consuming manual work, and smart contracts offer significant benefits to policyholders by streamlining the overall claims process, cutting down on delays and reducing uncertainty in the event of a loss.
For example, when technologies such as AI and machine learning are used with large data sets, they often uncover previously hidden patterns in the data that can enable insurers to better understand their customers and offer coverage that’s much more tailored to each individual.
By transforming their digital systems, insurers can position themselves for success and come out of the pandemic stronger than ever before.
Insurance is typically seen as a routine non-negotiable for businesses; and often one that businesses would rather have limited or no interaction with, except in times of emergency.
However, a relationship as important and consequential as the one between a business and its insurance broker shouldn’t be laden with negative connotations. So, to remedy this, insurers must work with their broker partners to take on a much more robust educational and advisory role with their customers.
By proactively supporting customers instead of playing a reactionary role in times of need only, insurers can develop a more positive and impactful relationship with end-users. This type of approach can then inform behavioural changes in businesses that help to reduce costs and help prevent loss.
As a result of taking on a positive advisory role, insurers can better help customers understand the true value of insurance before an incident happens. And firms that offer continual guidance will ultimately gain customer trust and loyalty which in turn cements their credibility.
Over the last five years, short-term contractual work has grown exponentially. And with the lockdown measures of the last year, this trend has accelerated even further.
As of November 2021, there were just over 4.2 million self-employed workers in the United Kingdom, according to Statista. As self-employed workers make up such a large percentage of total workers, there’s a big opportunity for insurers to position themselves as champions for freelancers by offering professional indemnity insurance cover to limit liability.
The demand for freelance insurance will only increase with time, so insurance firms must use a more agile approach and be forward thinking in providing innovative solutions to this demographic of business owners.
What’s more, our survey also shows that business confidence has dropped by 19% over the last 12 months, which is detrimental to the economy given SMEs make up 99.3% of all private sector businesses. Although the national lockdown measures have now eased, its impact on all businesses remain inconclusive and will continue to prove challenging as the economy nurses itself back to health.
To help with this transition, the insurance industry has a vital role to play in helping businesses to overcome what will be a tumultuous phase in the aftermath of the pandemic. But, in turn, this will enable insurers to strengthen their relationship with businesses and come out stronger than ever before.
By James Harrison, Head of Insurance at Dun & Bradstreet
To say the last two years have been a challenge for the insurance industry would be an understatement. And, while it can be argued that they’re in the business of helping customers navigate difficult times and protecting them from financial loss, who could have foreseen this global pandemic?
After all, insurance is a risky business in its own right and, with new technologies evolving customer expectations and a growing demand for personalised services, the industry is in a constant state of flux.
Add into the mix the growing challenges facing businesses in every sector, the demands on insurers to help to keep the country’s economy afloat is exponential. In fact, in September 2021, it was found that small companies in the UK received $1.4 billion in full and interim business interruption payouts since the pandemic began – all of which was straight out of the pockets of insurance firms. Inevitably, this extraordinary figure would have put insurers continuity plans under increasing pressure.
In this article, I’ll be exploring the three key ways they can come out of the pandemic stronger than before.
Digital transformation is revolutionising all industries and the insurance sector is no different. To sustain growth and keep up with higher customer expectations as we transition out of the pandemic, the industry must undergo continual digital transformation.
The onus is now on the industry to invest in digital technology, enhance operational efficiency and move forward as one. Implementing these changes will help to reduce cost and time-consuming manual work, and smart contracts offer significant benefits to policyholders by streamlining the overall claims process, cutting down on delays and reducing uncertainty in the event of a loss.
For example, when technologies such as AI and machine learning are used with large data sets, they often uncover previously hidden patterns in the data that can enable insurers to better understand their customers and offer coverage that’s much more tailored to each individual.
By transforming their digital systems, insurers can position themselves for success and come out of the pandemic stronger than ever before.
Insurance is typically seen as a routine non-negotiable for businesses; and often one that businesses would rather have limited or no interaction with, except in times of emergency.
However, a relationship as important and consequential as the one between a business and its insurance broker shouldn’t be laden with negative connotations. So, to remedy this, insurers must work with their broker partners to take on a much more robust educational and advisory role with their customers.
By proactively supporting customers instead of playing a reactionary role in times of need only, insurers can develop a more positive and impactful relationship with end-users. This type of approach can then inform behavioural changes in businesses that help to reduce costs and help prevent loss.
As a result of taking on a positive advisory role, insurers can better help customers understand the true value of insurance before an incident happens. And firms that offer continual guidance will ultimately gain customer trust and loyalty which in turn cements their credibility.
Over the last five years, short-term contractual work has grown exponentially. And with the lockdown measures of the last year, this trend has accelerated even further.
As of November 2021, there were just over 4.2 million self-employed workers in the United Kingdom, according to Statista. As self-employed workers make up such a large percentage of total workers, there’s a big opportunity for insurers to position themselves as champions for freelancers by offering professional indemnity insurance cover to limit liability.
The demand for freelance insurance will only increase with time, so insurance firms must use a more agile approach and be forward thinking in providing innovative solutions to this demographic of business owners.
What’s more, our survey also shows that business confidence has dropped by 19% over the last 12 months, which is detrimental to the economy given SMEs make up 99.3% of all private sector businesses. Although the national lockdown measures have now eased, its impact on all businesses remain inconclusive and will continue to prove challenging as the economy nurses itself back to health.
To help with this transition, the insurance industry has a vital role to play in helping businesses to overcome what will be a tumultuous phase in the aftermath of the pandemic. But, in turn, this will enable insurers to strengthen their relationship with businesses and come out stronger than ever before.
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