Financial Services Ireland

Covid-19: Insurance impact and response

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Covid-19: Insurance impact and response

Insurance has a role to play in the current pandemic: now is a moment of truth for the industry to provide the cover it was designed to cover, and to consider how to reach beyond those explicit obligations and do something more. In this there is a clear wish for and by the industry to provide clear communication to customers to meet their needs fairly and with flexibility. There is also a necessity for the sector to maintain its own solvency to meet those valid claims where they arise. As such the scope and capacity for the sector to provide retroactive coverage and extended coverages that imperil solvency is not unlimited.

This balancing act is fully understood and appreciated by our domestic insurers, and in particular the Central Bank of Ireland has called out in no uncertain terms the expectation of and on the industry. But it is also important to realise that our sector reaches well beyond these shores covering many policyholders in many countries throughout the world, through our reinsurers and international carriers.

That is just the now, but what about the next and beyond? The sector will need to consider how it supports future society in providing future and evolving coverages and to revisit how business is done, particularly in addressing remote client services for what is at the moment a shut-in economy.

There are very significant strategic tests for the sector and I am confident that it will rise to that challenge.

In the attached paper, we summarise our global perspectives on the threats and opportunities facing insurers sitting across four core areas, which all have significant ramifications for the reputational, financial and operational resilience of the industry:

  • Customer, product and distribution
  • People, operations and technology
  • Capital, liquidity and investments
  • Financial reporting and operations

Explore our latest insights and thinking to support you in leading through these volatile times, and reach out if you have any questions.

James Maher

Insurance, Sector Leader
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