Despite being built around the ability to respond to unforeseen circumstances, manage risk and expedite recovery, insurance is among the industries worst affected by the COVID-19 pandemic.
In some cases, insurers are settling claims far and above normal levels and taking a significant financial hit. In other cases, insurers are becoming the villains of the crisis, as they decline payment to policyholders unaware that their basic coverage will not respond without the required pandemic extensions. All insurers, even those more shielded from the most impacted lines of business, will experience the side effects of crisis as market volatility puts a strain on their investments.
Along with disruption and uncertainty, the outbreak of coronavirus also brings opportunity to those insurance firms willing and able to seize it. A heightened awareness of risk among the general population has seen demand increase for certain types of policy such as health and life insurance. And times of widespread market uncertainty often see an increase in private equity and
trade investment in the insurance sector. Against the backdrop of significant losses, one way in which insurance organizations can get themselves in a position to exploit these opportunities is through partnerships with insuretechs.
Find out more by downloading our free article, or reach out to Capco’s insurance lead partner, Matthew Hutchins.