Insurance Sector Grappling as COVID-19 Pandemic Continues to Surge
The rippling implications rendered by unprecedented outbreak of COVID-19 virus has significantly rendered irreparable loss across businesses, the most visible one being the finance and insurance verticals that are currently amidst a major paradigm shifting.
It is crucial to understand the immediate victims of the tolls that insurance sector which majorly comprise businesses, institutions and employees holding diverse positions and bands according to their remunerations.
One of the most visible business delivery models that has been refurbished for best customer experience is customized insurance plans and programs designed specifically to align with COVID-19 treatment which continues to remain a costly affair, limiting timely treatments across various social strata.
Additionally, businesses, especially small and medium stature ones are investing in disruptive strategies and business models to sync with the current crisis and ensure minimal implications of the pandemic.
Additionally, the insurance sector in itself is instigating novel strategies. One most relevant one in this line is the agent and broker relationship with their clients that is undergoing sea changes. Digital communication, digital tools and remote client building have attained firsthand importance.
Though full-fledged adoption of digital tools appears to be quite tricky, it is however acknowledged as the most doable thing in future, especially with the imminent emergence of a second wave of COVID-19.
The volatility of the insurance segment has directly impacted the functionality of equity markets, and amongst them, the most vulnerable ones have been identified as property casualty insurers who fall victims to catastrophic loss.
Hence, the damage control mechanism adopted include appropriate budget management and improved financial predictions.
Insurance companies and other financial institutions such as banks are investing amply towards damage control to fit into a post pandemic operational set-up. One devastating and immediate downside is the declining interest rates which has raised quite a number of eyebrows.