COVID-19: Recovery and Beyond for Life, Health Insurance, and Pension Providers
Analyzing impact on life, health, and pensions across different pandemic phases
The COVID-19 impact on life, health, and pension providers has been grim and insurers are striving to mitigate the impact and ensure uninterrupted service. Insurers are grappling with increased outflows due to rise in medical and life insurance claims, withdrawals, surrenders, and changes in tax rules and withdrawal limits for retirement pots. On the other hand, cash inflows are down due to extension of grace period for premium payment and reduced sales and investment returns. The COVID-19 impact on life and health insurance providers is also manifesting in increased turnaround time, especially for insurers that have been slow to digitalize.
While resilience will be in the spotlight in the crisis phase, insurers must relook at their business, operations, application models, supply chains, and workforce as they navigate the crisis. Specific actions that will help mitigate the COVID-19 impact on life, health and pension providers can be classified into key themes including:
- Products for a new beginning
- Socially distanced customer experience
- Purpose-driven ecosystems