BUSINESS
The silver lining in insurance post-COVID-19: a new business model At the height of COVID-19, the most pressing business challenge was operating remotely. Thanks to technology, insurers could respond, and for the most part, effectively work from home. Now, the sector faces a new crisis: the unknown. We are far from overcoming COVID-19 yet and planning for the future is near on impossible – but what insurers do know is that they need to be prepared for change. The urgency created by recent events acted as a catalyst for faster executive decision-making and action, driven by the need to protect people and maintain business continuity. The period ahead will challenge business leaders further to make rapid (and often difficult) decisions. Whilst technology will continue to be the enabler, trust, co-creation and a data-led approach will be the key ingredients towards successful transformation and a shift from protection to prevention.
Data is king Data is core to a “predict and prevent” model. It holds great importance and is becoming more and more integral in the industry. And with an explosion of digital technology, real-time data is becoming increasingly available to analyse water pressure, personal fitness, how we drive, the status of machine components and much more. The common approach to insurance is that customers purchase policies and nearly immediately forget about it… until an accident happens. Customers now ask far more questions with the majority related to COVID-19; a common example of late has been eligibility for money back on car insurance. This trend was confirmed when Admiral automatically gave 38
