North AmericaUSA

Post Pandemic Insurance: What’s Next For The Insurance Industry?

While there have been many major events across the decades, there has never been a year like 2020 – with a major bushfire season, storm events and now a global pandemic.

The buzz word of 2020 is unprecedented, yet this sentiment holds true. This year every business has been racing to adapt to the latest restrictions and what is now considered ‘the new normal’. More importantly, 2020 has tested every business continuity plan to be proven true or false.

The impact of COVID-19 on the insurance industry

The long-term impacts of COVID-19 on the insurance industry are too early to call, however short-term, the pandemic could have a flow-on effect to capital availability. The collective reduction of an organization’s financial assets – fuelled by weakening economies – could lead to a hardening of insurance premiums and coverage. Even pre-pandemic, Gallagher Bassett was seeing insurance markets ‘harden’ in any case.

Prior to the pandemic, many in the finance sector were already forecasting the market was hardening, resulting in higher insurance premiums and more restrictive coverage for most buyers. This has been contributed by a combination of social factors, such as the increasing likelihood of people lodging claims and costly catastrophic events. The pandemic is likely to accelerate this trend.

But there are silver linings for the insurance industry and employment opportunities the sector affords jobseekers or those individuals looking for a change post-pandemic. Thanks to the resilient nature of the insurance industry, Gallagher Bassett anticipates the sector will attract new talent at junior levels who may have lost their job during COVID-19.

What’s next for the insurance industry?

The biggest lesson out of the pandemic for business is that every employer should engage a broker and an carrier. Maintain healthy housekeeping, understand your business and partner with a reliable broker and carrier to make it happen.

Learn from the success or downfalls of your organization’s continuity plan and revisit your insurance coverage if your policy failed to provide adequate coverage through the pandemic. Your broker plays a crucial role in clearing up ambiguity in wording and can advize your business on the gaps where additional limits and offerings may need to be obtained.

The right cover is the oil that gets the economic wheel turning for your business and employees, should the events of 2020 occur again in the future.

Post-pandemic, insurance remains an industry to watch. As business returns to work and the economy starts to rebuild around the globe, the one thing that will always be constant and required is insurance.

Check out our three expected key trends for Carriers going into 2021.

For more great insights, whitepapers and case studies, visit our Insurance Carrier Resource Centre.

To find out more about how Gallagher Bassett partners with insurers to deliver custom claims solutions that support your business contact us today.

jon winsbury

Jon Winsbury

More Posts

Insights

How To Gain a Competitive Edge in Today’s Market

The insurance industry has long been regarded as a stable and reliable sector, but it is not immune to the challenges of today’s fast-changing business landscape. Mutual and mid-market carriers are facing a confluence of factors that are impacting their bottom lines, including rising business costs, complex claimant needs, and the mounting impacts of inflation. As a result, many mutuals and mid-markets may be feeling stuck and struggling to get ahead. However, for those seeking to move forward, leaning on a strategic partner could be the answer to unlocking the tools and expertise needed to address these challenges.

Read more
Insights

GB’s Key Takeaways from the TMPAA Mid-Year Meeting

The Target Markets Program Administrators Association (TMPAA) Mid-Year Meeting took place on May 1–3, and our Gallagher Bassett Carrier Practice team took full advantage of the ample networking and educational panels while discussing opportunities to collaborate and prosper in the program business space.

Read more
Insights

Five Ways GB’s Award-Winning Luminos RMIS Suite Supports Carriers to Achieve Superior Outcomes

Carriers are constantly seeking new ways to improve their claims outcomes, and Gallagher Bassett’s (GB) award-winning Luminos platform has emerged as a critical tool in achieving this goal. Recently named the top RMIS platform for its sixth consecutive year in the 2023 Redhand RMIS Report, GB’s Luminos RMIS suite offers comprehensive risk management capabilities and cutting-edge digital features that have helped carriers achieve superior claims results.

Read more
Insights

Expert Insights: Top Insights and Takeaways from RIMS 2023

In the evolving world of risk, embracing connection, discussion, and insight is the gateway to preparing for what lies ahead and setting a foundation for future success. The array of thought leadership sessions, educational seminars, DE&I discussions, and state-of-the-art solutions at RIMS has certainly empowered risk professionals to bring innovation to the heart of their operations. Our team at Gallagher Bassett (GB) shares the top insights we will be taking back to our desks.

Read more

Keep your finger on the pulse of the latest industry news and insights.

Sign up to our monthly newsletter today.

Hi there!

Want to drop us a line?  You can get in touch by filling out the form below and we’ll get back to you as soon as possible!