After Covid-19 Insurance Developments

Covid-19 has brought a lot of disruption in all areas of human life. Our homes have become epicentres of our lives. We work from home, we shop from home, we have home-schooling. Our home has become our sacred digital fortress.

Furthermore, the way we engage and interact with each other has been affected across all industries and geographies. With different physical distancing and quarantine restrictions we are no longer able to meet so freely in person. Our once “in person” activities now need to be digital and remote.

Also, value for money has become a top priority for many of us. Financial uncertainty in the post Covid-19 era makes us think twice about what and how much we can spend.

How can insurers address these challenges?

1. Changes in distribution models
For many insurance companies a physical sales force was the most significant sales channel up to now. Face-to-face meetings were the most successful way of catching customers. The still ongoing physical distancing is having major impacts on personal relationships (and insurance distribution, as well). The sales force, the insurers and the customers have switched to digital and remote interactions and tools, which was a huge change for many of us.

The key to survive a significant sales drop is expanding distribution partnerships. Insurers are reaching out to diverse companies so that these can offer the insurance products to their large customer base. This is one of the ways to maintain it sales volume at a satisfactory level in these times of crisis.

2. Putting the customer in focus
Going digital is not where the demand stops. Yes, it is important to remotely offer your services and products, but it is crucial that the sales process is easy and simple. There is no personal meeting, where an insurance product can be explained in detail.

Many insurance products are mostly considered as too complex to be easily explained and easily understood. Still, the shift in the distribution has made it a priority to simplify insurance products – therefore insurers need to give a serious thought on how their existing processes, products and experiences can be easily adjusted to the new digital customer.

3. Thinking long-term
There are some quick successes that insurers can do in order to cope with the new situation Covid-19 is bringing to their business. Still, they need to reconsider how to adjust their strategy to all the changes this pandemic has brought and will bring to us.

  • It is key to find the best sales channel mix
  • In-person sales will still play a significant part in the distribution of insurances. Still, insurance companies also need to prepare remote sales agents that are ready to interact with the digital customers.
  • Digitalising key areas of insurance sales
  • Paperless application and submission forms, digital signatures and online client onboarding should be in focus of digital developments.
  • Smart M&A acquisitions
  • The number of InsurTechs and FinTechs is rapidly rising. Their flexibility and simplicity in offering insurance products will help insurers cover the gaps in their distribution ecosystem and give them the possibility to offer new products to new customers on new territories.

Related Insights

Alma Ribanovic, Group Practice Leader Affinity at GrECo Group

Alma Ribanovic

Group Practice Leader Affinity

T: +43 50404 180