Nairobi, Kenya, September 10 – The coronavirus pandemic has presented the insurance industry with an opportunity to strengthen its relevance and vital purpose in society. At that critical moment, the insurance industry has realized the purpose of insurance by supporting affected individuals and businesses through expedited claims processing times, thereby positively impacting the rapid global economic recovery. I had to prove it. Especially when the crisis arrived, most insurance policies generally excluded the pandemic at this point. reward Basic.
Through coordinated efforts, the world’s pharmaceutical authorities have committed to the development and deployment of a Covid-19 vaccine, with the intention of containing the infection curve. It is worth noting that the restrictions on associations have generally been relaxed. Vaccine availability has acted as a catalyst to rebuild trust among people and businesses, fueling the economic recovery.
The expected recovery and additional innovative digital distribution channels will have a positive impact on insurers over time. As most insurers intend to leverage the post-pandemic period to innovate insurance solutions that resonate. However, a lot depends on how effectively the industry can adapt to new technologies and generational needs.
At a more fundamental level, there is also an emerging need to increase stakeholder trust in the insurance sector to increase retention and profitability. This could be achieved in part by increasing the transparency of how insurers collect and use personal data. Newly enacted data protection laws are paying special attention to how companies use and manage customer information.
In the post-pandemic era, insurers will more actively seek comprehensive solutions to solve social problems by reducing the economic impact of future pandemics and closing the coverage gap for natural catastrophes. became. At the same time, insurers must proactively communicate insurance issues frequently and consistently across multiple channels. This is because in a crisis like Covid-19, it’s hard to overestimate the value of communication.
Specialized niche insurance products are experiencing significant growth due to lessons learned during the pandemic. Many traditional products suffered significant setbacks as existing exclusions within policies had negative traction from customers, impacting the expanded business environment. For example, when it comes to travel insurance, the Black Swan Covid-19 crisis demonstrates the impact of large-scale disasters on international travel and business travel that has impacted multiple sectors.
The crisis has also accelerated the trend towards automation and digitization previously driven by changing demographics, customer expectations and competitive pressures. Customers now expect “the best digital experience” to be the norm, regardless of industry.
In other words, insurers are no longer competing against themselves, but against broader digital customer experience needs and product accessibility channels. With the existing broad digital competition in the market, customers are becoming increasingly informed and willing to reconsider their insurance options in rapid and unpredictable ways.
Customers forced to make other product purchases online have become increasingly accustomed to purchasing products online, even complex financial products. New or more digitally savvy customers are naturally drawn to companies that offer the best digital products. Transformation and increased usage in the financial services sector have played an equally big role in increasing the level of trust in financial products. Insurance included.
In my opinion, insurers could learn to take advantage of this post-pandemic period and, after reviewing the lessons learned, sought a more flexible, well-defined policy with minimal exclusions. It can shape the development of future products with coverage. Insurers should quickly consider supporting and implementing a system that digitally processes and distributes claims at the click of a button to increase customer trust and create a “wow” effect on the customer experience. .
Insurers must focus on meeting the needs of customers and stakeholders in the aftermath of the pandemic, but cannot afford to lose sight of long-term commercial opportunities and their role in fostering the broader economic recovery. I don `t go. This requires innovative insurers to create products that make sense for the general public. Mwananchi We provide an opportunity to access affordable insurance products. An example of a flexible and ideal product in today’s market is his Flexi Maisha Cover from Laser Insurance Brokers (LIB). This policy is generally aimed at small businesses and individuals who do not use traditional Group Life products, or individuals who are uneasy about years of monthly payments. Coverage terms are renewable annually and are packaged based on a flat coverage amount. The premiums paid are flexible and depend on the level of benefit chosen, eliminating the traditional requirement for a pre-insurance medical examination.
A proactive and decisive response from insurers could permanently reshape perceptions, solidify customer loyalty and build trust in the industry despite lingering concerns about the Covid-19 variant. increase. Digital accessibility of insurance products must be continually enhanced and encouraged.
Writer is the executive director of Laser Insurance Brokers (LIB).