The insurance industry has shown its resilience in the face of COVID-19. Unlike the financial crisis of 2008, insurers are now in a position of financial strength. And insurance customers are looking to them for protection. But how long will it last?
In this Insurance News Analysis, Abbey Compton and I talk about ways the industry can address the needs of customers as they gradually emerge from the pandemic. For example, consumers around the world are getting accustomed to digital distribution channels, and bancassurance offers now have wider appeal.
Demand for life insurance among younger consumers surged but could wane if insurers don’t do more to help prevent and mitigate injury and loss. These younger customers will also expect more wellness-oriented offerings in their group benefits plans as they move toward retirement.
Businesses are also looking to their insurers for protection as they work to resume operations. London’s West End theatres are examples of businesses reopening but struggling to get business interruption insurance for anything related to COVID-19. Insurers will need to work alongside these commercial lines customers to re-invent the offering and mitigate new risks.
As the pandemic subsides, concern for sustainability continues to grow. We also discuss how insurers are responding to changes in their product portfolios and whether sustainability and profitability are really trade-offs.
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