Covid-19, insurers affected but not wrecked
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Within a few months, the coronavirus has brought the world economy to a standstill, claiming the lives of two million people and driving 120 million others into extreme poverty.
After such a destabilizing shock, the year ended with the first conclusion that the pandemic is becoming a much more dreadful risk than a natural event, a war or a financial crisis. From now on, insurers will have to recognize this new type of catastrophic risk, the underwriting of which requires large amounts of capital.
The second finding pertains to the health crisis that has expedited the structural changes in insurance companies, with distance working becoming a reality, compromising certain jobs and traditional insurance distribution networks.
Another notable development pertains to Covid-19 that has boosted digital transformation. Indeed, a real tsunami of new technologies has swept over the insurance profession, prompting it, in record time, to develop new sales and communication channels with policyholders.
Finally, the last lesson of the year 2020 is about the insurance sector that has, once again, shown its resilience. Indeed, the market remains solid despite a worsening claims experience and declining revenues.
Insurance is one of the few activities that have not sought financial assistance from the State during these rocky times.
