Such as 9/11 which resulted in over $43b in economic losses, Hurricane Katrina causing more than $82b in damages, while Cyclone Idai was the most deadly catastrophic event last year killing 1,014 people, no one could have prepared the insurance industry for the current landscape with which insurers find themselves in now during the current crisis.
The industry faced with potentially one of the costliest catastrophic events in history as the global insurance market estimates there will be 11m to 140 billion total losses from the current global pandemic. Fortunately, insurance at its core is designed to withstand this type of risk and much like the large events, insurers will withstand this event as well.
Insurers however are finding themselves in unchartered territory dealing with other fallout from the pandemic. What is different about this situation has been the upheaval and disruption caused by the need to move from large brick and mortar with thousands of staff on hand to process thousands of manual processes daily to a largely work from home situation which at first was thought needed to be short lived, now, what seems like an eternity before staff will be allowed to work from the office. At the same time, insurers have seen a drastic increase of transactional volumes requiring knowledge workers to handle increase coverage inquiries, claims and more. It has quickly been made obviously apparent that even though the industry has been preparing and moving forward with their digital transformations, there is still much needed additional technology investments that will need to be made.