(Top) John Neal, CEO, Lloyd’s of London; Brian Duperreault, Executive Chair of the Board, AIG. (Bottom) David Knibbe, CEO & Chairman of the Executive Board, NN Group.
“The crisis is challenging us to think very, very differently about different types of risks and to recapture a state of innovation in the way in which we imagine and represent products and services. At our heart, we have a social core in insurance, in both life and non-life, so I think we have a great opportunity to step in and represent our value proposition.”
John Neal, CEO, Lloyd’s of London
Though the crisis of the pandemic is far from over, we can identify a number of trends that will have particular relevance for insurance. That said, most shifts did not begin with COVID-19 but rather were accelerated by it.
Companies are acclimating to a permanent increase in remote work. They should anticipate differing employee preferences and have policies that are not unfairly punitive. The purpose of the physical office will change. Spaces should be conducive to people meeting and interacting. Despite the successes of remote work, in-person exchanges can be more efficient and satisfy human social needs at the same time.
Digitalisation has clearly transformed businesses. An additional feature has been the surge in the use of cryptocurrencies, particularly by young people, which raises the question of their acceptability by insurers.
The insurance sector has a role to play in promoting a green recovery and sustainability. Companies are increasingly taking action against climate change through their investment and underwriting practices, but there are still pulls from shareholders with different priorities.
Before the pandemic fades from memory, insurers should engage with governments and other public stakeholders to build better channels for sharing risk information and considering innovative risk transfer solutions. Strengthening resilience needs to be prioritised. Governments will have an increasing role to play in preparing for and managing systemic risks, whether pandemic, cyber, or climate-related. However, there are challenges for insurers in cooperating with governments; public-sector decision makers do not have a professional framework for risk management. The industry must still invest in building collaboration and trust with governments to bring positive results for society.