Through COVID-19, the insurance industry – along with all business – has experienced a time of monumental challenge. The impacts of a health emergency have expanded into far-reaching economic and societal issues. It seems clear that as we emerge from this period, it will be into a new reality that will look very different to what existed before.
In preparing for the new reality, KPMG insurance professionals have set out the 11 key components of the insurance value chain and offer our insights on the actions that insurers should be contemplating. Naturally, these actions vary according to sub-sector – Commercial, Personal Lines, Life & Health – as customer needs, preferences and reasons for buying are quite different in each.
Certainly, there is much for insurers to do. Rarely will the transformation agenda have been so pressing. However, through all of this, the industry should face the task with confidence. One of the great lessons that COVID-19 produced was that businesses, including insurance, are capable of doing much more, much faster than anyone probably ever believed. Insurers managed a massive transition to remote working in just a matter of weeks; policyholders were serviced; operations were maintained. It wasn’t straightforward, but so much was overcome.
This knowledge should be the inspiration for looking to the future. There is no doubt that insurers can rise to the challenges posed by the new reality.
The insurance sector is managing challenges on many fronts. A whole of firm approach is needed to mitigate risks efficiently and effectively.
The insurance sector is managing risk challenges on many fronts.