EY Global released their 2021 Global Insurance Outlook report where they suggested there is an opportunity for general insurers to change their business models as we approach a post-COVID world.
The pandemic encouraged numerous changes that were slowly being implemented prior to the outbreak we experienced last year. We saw a substantial investment in digital methods including IT innovation, to stay in touch with consumers. There is a clear preference to communicate through mobile devices such as phones, tablets and laptops.
“The global insurance industry is facing a truly unique moment in its long history,” the report stated.
The disruption faced over the past year has provided a positive opportunity for insurers to embrace digital transformation. The industry has the potential to improve itself to align with modern times and market needs.
Although it is the responsibility of individual insurance companies to reposition or even reinvent themselves, EY believes the insurance industry has notable advantages and the ability to achieve growth and opportunity.
EY Sector Leader Grant Peters wants Australian insurers to connect more with their customer base and explore digital opportunities available to them.
The digital trend is becoming increasingly popular amongst consumers and is likely to continue. Mr Peters mentioned that “some of these trends existed pre-COVID but have been accelerated.”
A trend that is already prevalent and will continue is more flexibility in product terms and offerings that insurers have for consumers. Tailoring products for different consumers need to improve the overall customer experience. It is projected that we will see more innovation and competition in the area of insurance.
The EY report also mentions there will be a greater need for individual and commercial insurance solutions with the current economic recovery.
With the introduction of stricter regulations and reporting requirements, insurers will need to review the way in which they manage performance and share their strategies with capital markets.
Insurers have demonstrated their ability to adapt efficiently to a digitalised world. They now have a unique opportunity to embrace change and enhance their reputations in a customer-centric approach.
2021 Global Insurance Outlook Report – https://assets.ey.com/content/dam/ey-sites/ey-com/en_gl/topics/insurance/insurance-pdfs/ey-2021-global-insurance-outlook.pdf