Cyber security, data privacy and risk management
With higher levels of remote access to core systems, risk of social engineering efforts might increase, resulting in higher demand for cyber-related and data privacy-related services such as cyber maturity assessment, security testing, fraud detection, data governance and access management. KPMG can assist with the assessment and management of these risks to operations and IT.
Due to the pandemic, insurers are in need of additional manpower, especially for handling claims and queries. Insurers can supplement their existing resources by seconding skilled KPMG professionals for short or long-term assignments in areas such as in finance, actuarial and tax.
Enhanced claims management
The number of claims is rising, particularly related to travel, short-term disability, business interruption and other specialty lines of insurance. KPMG can provide support to insurance companies in enhancing their claims management system by using innovative technologies.
Business continuity planning
Due to its potential to significantly disrupt operating environment for FIs, the crisis has sparked a renewed interest in business continuity. Insurers would need sustainable business continuity plans to mitigate the impact of such crisis in future. KPMG can assist with services such as devising crisis management strategies, assessing IT DR architecture and contingency planning, to ensure that businesses run with minimal impact.
Insurers may be forced to re-evaluate the interactions between their internal processes, people, systems and external factors supporting business. KPMG can assist in managing critical processes that have significant exposure to emerging operational risks due to changes in processes and controls implemented during the pandemic.
Insurers depend on a wide range of third parties to deliver services and with rapid rise in operational volume, they will be challenged to review and update their crisis management plans. We can assist insurers in taking necessary steps to continue operations with minimum disruption to clients.
Financial and capital management
Valuation and price determination can become a challenge for insurers due to market volatility and decline in liquidity for certain products.
They will be required to address these expected credit losses in their portfolios. KPMG can assist with services such as capital management, financial modelling and portfolio management.
Many insurance companies are setting policies around remote access to support social distancing. To ensure appropriate supervision and review processes, KPMG can assist companies in the adoption of new ways of working, digital enablement, training capabilities and performance management.
In order to provide services to customers effectively and to run business efficiently during the pandemic, insurers may benefit from leveraging emerging technologies. We can provide services that can enhance virtual customer interaction, online claims filing and policy servicing.
After witnessing a remote working environment situation, a greater number of insurers may identify the importance of migrating more systems and applications to the cloud, as it offers greater bandwidth and capacity than accessing on-premise servers remotely.
The Covid-19 pandemic has led to regular changes being announced related to tax requirements, deferrals and incentives across geographies. KPMG can assist banks in monitoring these changes, evaluating tax obligations, tax modelling and other updates related to direct and indirect tax and transfer pricing.