Specialty insurer and reinsurer Brit has suggested that the COVID-19 pandemic could “significantly exceed” the $107 billion claims estimate predicted by Lloyd’s last year.
The comments contrast with the view of some other analysts, such as those at Berenberg, who recently reduced their industry loss estimate from $50-70 billion to $40-60 billion.
Notably, the Berenberg estimate is now lower than Swiss Re’s range of $50-80 billion and significantly below the $107 billion Lloyd’s figure, which makes Brit’s outlook particularly pessimistic.
Matt Sheehan Reinsurance News 12th Feb 2021
The world became much more complex in 2020. COVID's seismic effects have also meant that the world for insurers and their claimants will mirror that complexity for years to come.
Momentous changes in underwriting and claims were relatively rare before 2020. The rise of the internet as a primary sales channel was slow and relatively calm. LASPO's effect on personal injury claims was more dramatic. The effects of regulatory scrutiny and the loss of investment income were also relatively drawn out affairs.
COVID entered this stable world with an almighty jolt.
March 23rd 2020 delivered vast operational challenges to Insurers overnight. Call centres and Claims hubs where staff co-locate could not operate. Post rooms for paper-based claims handling ground to a halt. In short, massive logistical issues for both claims and customer service. But multiple lockdowns also changed claims profiles for motor, home, travel and life insurance that had been built steadily over 40 years of actuarial analysis.
360Globalnet's no-code digital claims technology helped turn complex problems into simple strategies for insurers big and small in 2020. We continue in 2021, offering ultra-rapid configuration of both e-FNOL services and the automation of workflow and supply chains. Most of all, we allow business practitioners in claims departments to make their own adjustments to systems without waiting in the IT queue with a big chequebook! The beauty of no-code is that claims managers cam make their own changes and deploy them in hours in response to rapidly changing situations.
During Lockdowns, this often means moving claims loads from telephone to web and then automating the repetitive steps that are not easy with staff out of the office.
Every claims handler can log in and see customer records via the web on our ultra-secure platform that resides in single tenancy AWS.
With times ahead uncertain, the flexibility to adapt quickly and offer customers Amazon-esque real time notifications at every stage of their claims makes handling challenges far easier.
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Find out how the 360Globalnet no-code system can help you deal with complexity. We are happy to chat or provide a free no obligation demo whenever is good for you.
Discover more and get in touch: Mike.Daly@360Globalnet.com
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“Estimating the overall cost is highly subjective and is dependent on factors such as how long lockdowns and social distancing continue, the ability to reschedule events and the potential of minimising cost by either the early cancelling/postponing of events or holding them behind closed doors. All these factors play into our loss estimates.” Brit also continues to monitor the impact of claims on its wider business and the potential impact of a pandemic-induced global recession, which is expected to bring increased moral hazard, fraud and a more litigious environment generally.