Responses to COVID-19: the Scope for Hope
The COVID-19 pandemic hit the world by surprise, and has taken its toll on individuals, businesses, and the wider economy across the entire globe. And while the world economy has been severely disrupted, microinsurance clients have been hit particularly hard by the global crisis. Insurers face tremendous challenges as they work out how to buffer the future of billions of low-income households and small businesses against this new shock. At the same time, insurers face a related impact on operational costs, which have increased due to crisis management measures even as premiums collected for many businesses’ lines shrink.
We recently surveyed our members to evaluate the global impact and implications of COVID-19 on the business case for microinsurance, learn about insurers’ immediate responses to the pandemic and the challenges and pressure they are facing, and whether the crisis has also created new opportunities in the medium and long terms.
The survey was particularly significant to critically reveal whether insurers are reinventing the wheel or accelerating trends already underway. Certainly, the COVID-19 crisis has prompted a drop in MFI activities, delays in getting new partnerships, delays implementing new solutions, and indeed a reduction in the number of claims. Yet, it has forced the insurance industry to change specially around digitalisation, make sure they are conforming to the clients’ expectations, and offer valuable products that clients know about and understand.
Read the survey results and learn about insurers’ immediate response to the pandemic and the challenges and pressure they are facing by downloading our briefing paper here.