To emerge successfully from the COVID-19 crisis, insurers need to execute short-term, tactical and strategic initiatives, often at the same time.
We have defined four specific phases that organisations will need to plan for: reaction in the short-term, resilience and recovery in the mid-term, and positioning for the new reality in the longer-term.
A balanced and distinct approach to each of the four phases should be deployed to achieve the best results.
All organisations in the insurance sector have been severely tested by this crisis and from the boardroom to the field agent there will now be widespread appreciation of the importance of business resilience.Business resilience has three aspects:
Each aspect is a vital part of long-term business health, however at this time, many of the short/mid-term challenges are firmly in the operational space. This paper focuses on how to use operational resilience as a key lever to optimise business performance during and after COVID-19.
Organisations have reacted reasonably well during the initial period of the crisis. However, due to changed ways of working, they have experienced an increased level of risk in areas such as data, controls or cyber security, simultaneously. Now, organisations will be starting to move forward to work out how they will rebound. Despite the continuing COVID-19 unknowns, assessing learnings from the organisation’s initial response whilst also working out how to recover and sustain business performance is key for future success.
KPMG has developed a simple and practical COVID-19 recovery framework to help organisations respond to this crisis in a structured way, dividing it into four discrete phases:
The phases should be run in parallel, but each one will need a different approach and mind-set.Organisations are approaching this period differently. Whilst there is focus on getting back to the office, most are simultaneously challenging the old ways of working. There has never been a better time to think strategically about business and operational resilience -investing in the future today will reap benefits tomorrow.