The Covid-19 pandemic has changed the world we live in. Loved ones are forced to live apart, shops have been closed and schools have been left empty. Within that new world, insurers and brokers have had to re-evaluate the way they work

By data insights editor Matt Scott

Insurance has never been known for its ability to integrate new technology quickly in order to adapt to changing market dynamics.

Cumbersome legacy systems, cultural hang-ups and complex regulatory oversight have all contributed to an industry that historically has been slow to change direction.

But with the outbreak of coronavirus across the globe, the situation has changed dramatically.

Overnight, brokers, underwriters, claims handlers and all manner of insurance professionals were banned from their offices and forced to work from home.

Of course, the technological logistics of such a move were mammoth and the industry responded to the crisis with mixed levels of success.

Some insurance companies were able to quickly mobilise their workforce, enabling key members of staff to work from home almost immediately and then onboarding other workers to the new remote systems as part of a phased response.

Others, meanwhile, struggled with the sheer weight of the challenge. Systems didn’t work; data couldn’t be accessed; and important decisions could not be made.

And what they all found out was that, for the most part, their technology and legacy systems were out of date, unresponsive and inadequate in a world where mobile working was not just a nice-to-have, but a necessity.

Of course, as with everything, there is always the exception that proves the rule. Digitally-led startups and insurtech disruptors are known for their great use of technology and have often acted as enablers for their larger, more cumbersome cousins.

And now that the coronavirus crisis has changed the insurance landscape for good, their importance to the industry has never been more important.

Insurers and brokers now need to look to these disruptors as partners to get their businesses back on track and enroute for success in a post-Covid world.

This marks a real turning point for the industry, and brokers and insurers alike must be hoping that the pandemic acts as the wakeup call the insurance industry has needed to help it move into the 21st Century.

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