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How Are Insurance Companies Mitigating The Impact Of COVID-19?


Neutrinos - April 26, 2020 - 0 comments

How Are Insurance Companies Mitigating The Impact Of COVID-19?

COVID-19 seems to have taken over the world, everywhere you turn that is all people are talking about, be it the lockdown, or how it has impacted industries in various ways. Talking about industries, the insurance industry has also been hit hard with the COVID-19 disruptions. 

While disruptions are not entirely new, the challenges faced by companies, and governments are different. The main focus has been on dealing with the disruption and ensuring businesses stay on their feet.  

 Today’s insurers/agents world over face a whole new set of complex challenges, from navigating the market uncertainty, sales, policy administration, claims management and understanding consumer demands to servicing them efficiently. Insurance companies have now shifted from traditional methods of operations to remote & digital entirely. 

The question that most businesses ask/answer would be “Once the COVID-19 lockdown is lifted- where is the business headed to next?”

Digital Insurance Sales

The one trend that is bound to become a permanent element post COVID-19 phase is insurance companies adopting “Digital Insurance Sales’ concept, considering insurers can no longer meet their customers face to face. They need to adapt to the changes, and settle into working remotely and utilize various tools made available to them. Bringing in automation into the processes will be a good path to curb operational costs as well.  

Businesses are working on creating strategies that will work well in the long run, while giving their task force all they need to continue performing, if not better. The COVID-19 situation has also given them the opportunity to regroup and redesign any operational tactics and solutions. One of the questions that would arise would be around the pricing of the policies, one that could make a difference to the future of their business. 

However, we have noticed that the insurance industry does have a few tips and tricks that will help them tide over this situation. Here is what they can do, and what some companies have already begun implementing.  Read on…

Going Digital:

Insurers do like stability, and while COVID-19 has thrown a wrench in their plans, Insurance companies have stepped up and shifted to having their workforce operate remotely and given them platforms to facilitate seamless processes.

Consumers who have become comfortable using the online channels for their day-to-day activities will adapt to digital purchase of Insurance policy as well. With insurers switching to digital tools to offer advice and guidance, it becomes a one-stop solution – saving time and money along the way.  

Building Agility: 

Being agile is an element that will help insurers fare better under such circumstances and help them in the future as well. Agile insurers are ready and willing to embrace the changes and innovation, which is a big positive for the insurance company. This allows thinking on their feet to resolve issues and be more responsive.   For the company, this has opened new doors, especially since they have understood the need to evolve, and create policies that work better and faster, given the changing market scenario. 

Data Protection: 

Companies have strengthened the remote access policy and procedures, making sure that the security networks are top notch; the data exchanged between the insurer and the customer is protected and high levels of security implemented across systems. Working remotely does not infer working with no security protocols, in fact it is quite the opposite. This also assures the customer their data is protected and builds trust, nudging them to take on additional policy and refer others. 

Innovate:

In order to survive, compete and get ahead in the game, companies are under pressure to create new products and to innovate. Taking a closer look at the products offered, redefining business goals and altering coverage related elements [for example, if a policy covers disruptions caused by a pandemic] is what helps insurance companies sail through and boost sales. Businesses are facing disruptions, to a point where some have had to shut shop for a while and so, innovations will help retain them as customers and also help them get by when they reopen or launch a new business idea.  

Invest in Distribution Channels:  

Riding the wave of change, companies will start investing in newer distribution channels to ensure business continues and succeeds. The main objective of a good distribution channel is to allow insurers to reach out to customers they otherwise wouldn’t have access to, and for customers to access and purchase desired products with short turn around times and without too many hiccups.  Companies can also look at investing in new distribution channels that will bring them new opportunities and reinforce capabilities through the existing broker networks and digital platforms.

Variable Cost Model:

The one big valuable lesson learnt by all companies is to keep business costs to minimum. And to support this, most companies have done an extensive study to identify which elements to maintain in-house versus which can be outsourced. While it is bound to have an impact on the workforce, all the way to the supply chain, it does help them grow their business. Smart thinking that will work in the long run.

An overview based on the LexisNexis Risk Solutions India Consumer Insurance Study:

Consumers consider a wide range of sales channels

  • 61% of consumers are very likely to purchase life insurance through an agent or broker (31% fairly likely and 5% neutral)
  • 58% of consumers are very likely to purchase motor insurance through an agent or broker (31% fairly likely and 8% neutral)
  • 57% of consumers are very likely to purchase health insurance through an agent or broker (30% fairly likely and 10% neutral)
Most consumers are positive or neutral to online channels

  • 28% of consumers are very likely to purchase life insurance through an insurance company website  (17% fairly likely and 27% neutral)
  • 25% of consumers are very likely to purchase life insurance through a bank website (20% fairly likely and 28% neutral)
  • 24% of consumers are very likely to purchase life insurance through an online aggregator website (18% fairly likely and 29% neutral)

Source: LexisNexis Risk Solutions India Consumer Insurance Study (amongst those without insurance)

Presenting Neutrinos Digital Insurance Sales Suite 

At Neutrinos, we have been at the forefront of this digital transformation, and have introduced the Digital Insurance Sales. Combined with our strong distribution suite and technology solutions, this will give the insurers all they need to continue with conversations and sales.  

The Neutrinos Digital Insurance Sales Suite offers Lead Generation & Management, AI based Sales Management Solution, Intelligent Financial Needs Analysis, Remote Workflow based Signature Solution, SMART point of Sales Solution and Adviser Servicing/Products Solution. Apart from these, there is a dashboard to track policies in real time and access to digital platforms to stay connected with the customer. 

We would love to connect and take you through our Digital Insurance Sales Suite… Visit our website and connect with us now!

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