The development of a vaccine will mark the beginning of the recovery from the COVID-19 pandemic. The associated economic rebound may not have a clear marker. For insurers, the long-lasting effects of COVID-19 can range from moderate to severe across multiple business elements.
Though insurers have been planning for pandemics, measuring the exact impact of COVID-19 largely depends on the health of individual countries, income security, fiscal policies, and, most importantly, the effectiveness of containment efforts. In the accompanying report to this blog and video, we outline three scenarios resulting from the pandemic. In it, we consider the possible progression of the virus, its economic impact, and insurers’ responses to it.
The report also contains a spreadsheet that takes clients through scenario possibilities. It addresses the impact of each scenario in these areas: customers; products; markets and competition; channels and technology; and regulation. We also outline priorities for the customer experience; marketing; digital; process; the employee experience; and technology in each scenario.