The COVID-19 pandemic has drastically changed the insurance industry landscape. It has presented new challenges for insurance companies including higher claims and losses, the need for new pandemic-related insurance products, and pressure on customer support from increased queries. Insurers must now focus on areas like claims operations, pricing and underwriting, customer support, loss estimation and reserving, sales and marketing, and legal issues. Analytics and AI solutions can help insurers address these challenges and opportunities.

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Impact of COVID-19
on Insurance
Industry - PoV

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Insurance – How the landscape changed…DRASTICALLY
COVID-19: Challenges & Focus Areas for Enterprises Learn More
2019 - Top Challenges
Cybersecurity Macro Economic
Risk
Market Risk Data
Availability
Talent
Acquisition
Climate Risk
2020 – Challenges in post corona world
New type of
claims – Higher
Losses
Need for new
products to cover
for pandemics
Increased queries -
Pressure on
customer support
Limited movements
of agent/brokers -
Reduced sales
Limited resource
availability – WFH
for critical functions
Evolving fraud
behavior

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Increased Loss
New type of claims
Changes in Government regulations
Forced actions from government/
Overriding Policy wordings
Pressure on customer support
Increased queries from customers/
brokers/agents –
Agent / Broker limited movement
due to lockdown
Limited buying power
Buying propensity/inclination
Work from home permits for
employees UWs/ Actuaries/ Claims
managers
Claim backlogs/ Rejections
Delays in claim payment due to staff
unavailability/ limited knowledge
Customer’s dissatisfaction/ litigations
Policy/product changes – what to
cover & how to price
Pandemic/Epidemic covered pricing
Underwriting changes
Increased/modified UW scrutiny –
underwriting strategy
Drop in sales
Customer insights, broker/agent
enablement with account/ customer
intelligence
Remote working process
Digitalization of processes and
workflow
Information security & audit
Intelligent Automation & Digitalization
Claim processing/adjudication, fraud
detection, underwriting etc.
Repricing, Rate calibration/ Reserving
Emerging risk identification, exposure
estimation & loss prediction – by sub-
industry, LoBs and regions
Customer service
Capacity planning, emerging topics &
sentiments, digital offload
Sales/marketing
Direct-to-customer & digital sales channels;
Assisted sales models for broker/agents with
intelligent tools and customer insights
Enhance policy/products
New types of covers/products; amendment
of existing policies inclusions/ exclusions etc.
New Challenges
Impact on
functions & processes
Focus areas for insurers
COVID 19 – Massive shift for Insurance Industry
COVID-19: Challenges & Focus Areas for Enterprises Learn More

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Claim
Operations
• Higher number of claims and high claim rejections
• Higher scrutiny for policy exclusions/inclusions and changing product T&C
• Unavailability of claims staff for processing claims
• Potential increase in Fraud – new types of Fraud
Pricing /
Underwriting
• Increase in exposure across various product lines
• Increased underwriting scrutiny – policy/guidelines changes
• Shortage of underwriting staff capacity
• Info security risk owing to WFH
Customer
Support
• Increase in queries from customers; Changing query reasons - related to
existing Policy coverage, new Policy, rejected claims
• Capacity shortage; need for higher product/rules knowledge
• Negative customer sentiment – threat to long term trust/affinity
Loss estimation
/Reserving
• Increase in loss cost for Travel, A&H, Health, Life, WC Insurance products –
uncertain loss development
• Higher capital allocation and reserving
Sales/
Marketing
• Drop in sales due to limited Agent/ Broker movement, reduced telemarketing
• Limited consumer buying power
• Higher underwriting requirements – e.g. medical tests, physical audits etc.
• Shift to digital channels (direct vs. assisted/advised sales)
Legal
• Increase in number of dissatisfied customers – potential litigations due to
high claim rejections, liability determination, social inflation
Key
Solutions
Heatmap – Key challenges & mitigation opportunities
Keen in discussing the mitigation opportunities through Analytics and AI Solutions?
Talk to BRIDGEi2i Insurance experts

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