A new era
During the past years, the insurance sector was already experiencing a timid evolution towards more digitalized process. However, the current situation and the pandemic are boosting a faster change. Also, it is important to take into consideration that clients are not looking for the same products anymore. Their lifestyle changed, and so do their needs.
One clear example is the massive cancelation of travel and event insurance products due to the restrictions, whilst the purchase of health care insurances increased because of the thread of getting infected by COVID-19. Moreover, processes also changed. More and more purchases are being done online, as well as customer support processes are digitalized in order to avoid contact because of the pandemic.
The ecosystem is in constant development
On the other side of the coin is the loss of insurance companies. According to UNESPA (Spanish Insurance Corporates’ Association), the income coming from premiums during the third trimester of the year 2020 decreased a 10.82% compared to the previous year. Even if the figures are remarkable, still, the sector keeps a high level of solvency. The cause of this decrease are all the preventive measures and derived crisis from the global pandemic.
Good news is that recently, more and more insurance companies are up to collaborate with Insurtech companies. Specifically, according to the World InsurTech Report 2020 by Capgemini, 67% of these companies are up to sign up agreements with Insurtech companies for the automatization of their processes and develop towards a more digitalized company.
Unfortunately, more and more, we are using the word “cyber-attack” in our daily conversations due to the recent cases against for example ACER. And so do insurance companies. Cyber insurance became a critical tool for preventing massive cyber-attacks, and even if during the past there were a lot of competitors inside this industry. Now, companies are looking for very precise products designed considering their needs thanks to technology.
Insurance companies are now requiring a faster digitalization in order to stop losing clients and make their investments more profitable.