De Quelle Pays Vient Le Viagra Bayer Levitra 20mg Doxycycline Ulcere Oesophagien Augmentin Interdit Achat Plaquenil Prednisolone Douleur

Insurers want to spice up monetary and operational resilience


COVID-19 is causing insurers to focus their efforts on both the financial and operational resilience of their businesses face economic challenges created by the virus.

It’s no surprise that insurance prices are rising as the industry assesses the magnitude of the risks and losses associated with the pandemic. US ccommercial insurance The prices rose by Almost 10 percent in total compared to the same period a year ago, This is the biggest quarter-to-quarter shift since 2003. It will help insurance companies keep their balance sheets more stable.

Financial resilience

This is a normal “market hardening reaction” as the unit price of the risk increases across the P&C lines. To some extent, this is also a cyclical response as prices tend to come under pressure when there is loss trends pretty stable or low, and the market hardens as risk and loss increase. This is one way the industry is returning to profitability and we will certainly see higher prices as the market continues to harden due to the scale and risks associated with COVID-19 and catastrophic events.

However, air carriers must also look beyond financial resilience and focus on their operational resilience as the effects of COVID-19 are sure to test this. Within a few weeks, the pandemic forced insurers to deploy and reconfigure their workforce for remote operations so that their operating and technology infrastructures had to function radically differently.

Long-term operational resilience

With such dramatic changes in such a short space of time, insurance carriers must first review their operational resilience in terms of risk, safety and costs and then adapt them to the new reality.

Because the market has changed so much this year, insurers will have to reconfigure their existing ledger to reflect these changes. The small commercial insurance market, for example, is fundamentally different than it was in February.

Imagine a restaurant owner who is much more reliant on delivery services today. Does this owner really understand the associated changes in risk exposure? Does the restaurant need new and / or different cover?

New Products

Aside from market shifts in existing coverage, the widespread impact of COVID-19 is causing customers to consider products that were once considered rare or esoteric.

For example, the event cancellation policies are getting a lot more interest. Customers became aware of this when Wimbledon received a large payout after canceling its famous tennis tournament. This is an area with great potential for new income.

Similarly, parametric insurance, which pays damages in response to the occurrence of a specific event, rather than covering the actual damage, is also receiving new attention. A parametric guideline was actually offered to cover business interruptions in the event of a pandemic, however nobody bought it. No wonder that interest in this and similar products is now much greater.

Migrate to the cloud now

Each of these factors together can help increase operational stability. However, long-term reliability is not possible without a faster migration to the cloud. It is now a must-have and the foundation to facilitate digital workforce operations, improve data security, bring new and improved products and experiences to market, and implement structural cost reductions.

Subscribe to more from Accenture Insurance.

Disclaimer: This document is for general informational purposes only and does not take into account the particular circumstances of the reader and may not reflect the latest developments. To the fullest extent permitted by applicable law, Accenture disclaims all liability for the accuracy and completeness of the information in this presentation, or for any acts or omissions that may have been made based on this information. Accenture does not provide legal, regulatory, auditing, or tax advice. It is the responsibility of the readers to obtain such advice from their own legal counsel or other licensed professional.
You might also like

Leave A Reply

Your email address will not be published.