The coronavirus pandemic has hit all businesses hard, especially those in the hospitality and travel industries. However, there are some industries that have discovered new and better ways of working and have actually identified and seized opportunities they might not have previously.
One such industry is insurance. Brokers who have shown willingness to adapt to an unpredictable and ever-changing landscape have seen success and improvements in terms of both revenue and efficiency. So, how have they done this? Let’s take a look!
March 2020 will forever be the moment when everything changed in the UK. Although we would like to think we’d have gone back to normal by now, there is a ‘new normal’ that has emerged as a result of the pandemic and its fallout. Insurance brokers are still trying to understand the long-term effects coronavirus will have on the industry, but it is likely to be one of the industries that is hit hardest financially.
Not only will these financial losses come about due to increased payouts – the ABI expects that up to £1.2billion will be paid out as a direct result of the virus; these will mostly be involving events, travel, and business interruption – there is also a chance of losing money if brokers intend to refund premiums based on a decrease in business. Any product premium that is based on wider outside influences will likely cause customers to seek cancellations or mid-term adjustments. For example, fleet insurance providers might decide to refund premiums as the insured person’s business is not as busy as it once was, and they are therefore using fewer vehicles.
Of course, with such uncertainty, brokers are looking at becoming more resilient to potential changes by streamlining and improving processes in an operational sense.