categorytitle / Research Update .
  • time : 10:13:54
  • Date : Mon Jun 29, 2020
  • news code : 3373
Coronavirus: Driver of Digital Disruption in the Insurance Industry
Despite the challenges that coronavirus outbreak has created in the insurance industry and due to the unavoidable changes it has brought about for the mankind and the society, it has brought changes to the workplace environment, accelerated the already-initiated movement toward the digital distribution channels and a less direct human contact.

A recent report released by IRC entitled “Impacts of the Coronavirus Outbreak on Sales Network and HR Management in the Insurance Industry” addresses the direct and indirect impacts of the pandemic on the insurance sales network and HR management, according to PRIAO.

The indirect impact of the virus spread on the insurance industry is originated from the demand side and this has further reduced the transaction volume and the underwritten premiums.

The indirect short term impacts of the pandemic has made the insurers face with challenges regarding the human resources, corporate investments, and payments of the coronavirus related losses.

Nevertheless, the long term impacts of the virus spread is implied in the insurers’ deeper understanding of the role insurance plays in the world and the future plans they envisage that make their business thrive. Other long term impacts on the insurers include offering parametric insurance products with reasonable prices, considering some limitations in reducing the insurance prices for some types of policies, and offering exclusive pandemic insurance products.

Based on the results of this report, the most significant direct impact of the coronavirus outbreak on agencies is to move purchase offers to digital distribution channels. Enforcing telecommuting and directing the potential buyers to digital channels are some of the strategies to keep the employees safe and keep the business thrive. This makes the outbreak period a time for productivity, education, and more suitable intermediaries, and new customers.

The Persian full text of the new report is available at this link.

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