The insurance industry is facing mounting pressures to change policies, review premiums and address the coronavirus (COVID-19) pandemic head-on in terms of financial backing.
In light of the extensive support laid out by the UK Government, including various loans and the increasingly popular Job Retention Scheme, many have called on the insurance industry as a whole to react in a similar fashion, in light of mass cancellations and the disruption of life as we know it.
The reality is, however, that a private sector like insurance cannot be relied on to provide such a large amount of support at such short notice. If insurance businesses relaxed their policies this much, the entire industry would become insolvent.
This doesn’t mean that insurance companies do not have a part to play in managing how individuals and businesses will bounce back from this pandemic.
On the contrary, insurance companies have a duty to implement strategies, develop plans and deliver them adequately in order to meet rising demands.
One way in which to achieve this is by prioritising effective business management.
The importance of business management in insurance
Last month, we published our guide on the next steps for insurance businesses affected by COVID-19. As part of this, we stressed the importance of reviewing internal processes and preparing an adequate strategy going forward. This is still very much relevant.
The majority of insurance businesses will now hopefully be set up in a way that conforms to specific regulations and data protection laws, as well as managing to work at the most productive level possible in line with increased demand related to:
- Strategic change
- Communication demands
- The post-COVID-19 Landscape.
With potential reductions in change activity and resource availability, as well as pressures regarding internal and external communication and preparing for the future, business continuity has to be at the forefront.
Nobody could have imagined the scale of damage that this crisis would cause, meaning that plans in place need to consider the change of long term priorities, a sustained resource planning strategy, a review of compliance and risk policies, and much more.
Here at MDA Training, our consultants are working to provide digital solutions for insurance companies throughout the coronavirus pandemic.
With business continuity at the core, our programmes are designed to give employees a developed understanding of the current market conditions, as well as how the business is run.
We utilise digital learning, e-learning and microlearning as part of our programmes for the insurance sector.
From an introduction to reinsurance to improving communications and shining the spotlight on Solvency II and IFRS 17, we are able to embed and sustain key learning back into the workplace.