The National Bank has issued guidance on mitigating risks due to the coronavirus outbreak for Insurance Companies and Pension Funds on March 26. The National Bank expects updating business contingency plans, and a more rigorous monitoring of bonds and shares bound to regions heavily affected by the pandemic. Insurance Companies were warned to carefully monitor increased default risk on credit-insurance and to review appropriateness of reinsurance contracts.
While communicating with clients, the National Bank advised to highlight it for the clients that insurance products are long-term investments, where current losses may be compensated in the future in potential positive future outcomes, but liquidating the investment now will realize an immediate loss.
In this situation, it is particularly advisable to direct customers towards electronic communication channels, but where personal administration unavoidable a high level protection is required for both customers and employees. Fortunately, more and more institutions have recently expanded their electronic, digitally-managed cases. Simplified money laundering customer due diligence with pre-audited electronic tools, an electronic claim filing or even a video claim review have been published. Not only can they improve customer experience, increase efficiency, and reduce costs in the medium / long term, they can ensure business continuity in the current situation as well.
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