How COVID-19 Affects Insurance
This pandemic has hit us all individually and it has hit the world in so many ways, most of which we can’t even fathom. A single virus and its unprecedented spread has caused a ripple effect across the globe.
From an insurance front, the outbreak ripples on multiple fronts, among claims payers, employers and capital managers. Each of these sectors has a large effect on not just the economy but society as a whole.
The number one priority during these troubling times, more so than the stability of our nation, is that of the health of our nation. The sooner we end the spread, the sooner we can all go back to our ordinary lives. Insurers are prioritizing the health and safety of their employees and partners among the agent/broker community.
Among the many changes are that of the crisis management and safety protocol plans that are now being reevaluated in order to avoid heavy disruptions for their client base. Many employees in the industry are being sent to work offsite or from home. Access to necessary files are being given and companies are loading all of their workload onto cloud-based systems. The plan is to make going to the office unnecessary.
Insurance employees should have access to their laptop or desktop computer provided by the company. These computers should be equipped with a private network and employees should have access to an IT support team to help them out, should anything go wrong from their new work-from-home stations.
Insurers are studying the overall impact that the pandemic is having from a short and long term financial perspective. The main concern is how the outbreak will affect the economy and prospects for growth.
The Insurance Information Institute, in its first quarter “Global macro outlook,” reported that “COVID-19’s impact on global growth and the insurance industry is likely deeper and wider than the current consensus and could last well into the third quarter and beyond.”
Time will tell how this pandemic unfolds and whether or not this spread will dwindle. However, events like these need to be planned for and that is why insurers are prepared for a financial setback of this magnitude.