Welcome to our fourth edition of Four For the Week (44TW)! Many states have started to reduce restrictions this week, with certain businesses permitted to re-open, albeit at limited capacity. We’re excited as these first steps back towards normalcy, but also looking forward to understanding the long term impact of recent events, and how our industry demonstrates its resilience…
1) McKinsey Report – How Covid-19 could change the Auto Insurance Industry
Decisioning & Outcomes
Claimatic Team
The COVID-19 pandemic continues to expand, and the United States has now surpassed all other countries by number of cases. Few anticipated the pace at which the US economy would shut down and physical distancing would become so pervasive. Like all industries, insurance has been materially affected: since the onset of the pandemic, it has lost $760 billion globally in market capitalization, the third highest among all industries. Across the US insurance industry, the impact will be uneven, and while there are some more straightforward developments relating to business interruption, life & annuity, commercial P&C & other carrier concerns, there are also numerous secondary impacts coming. McKinsey’s put together a great article on the potential impacts on the US auto industry that’s worth a read. Take a look…
2) Willis Towers Watson – Q1 InsureTech Briefing
Strategy & Innovation
Denis Connolly, VP, Corporate Development
The only constant is change — a trite statement for our industry to say the least, but one that feels almost reassuring to remind ourselves of this. 2020 began with many predicting some significant changes for InsueTech at an industry-wide level — ranging from a fundamental full-scale adoption of innovative technology across the board, to the opposite extreme of a total collapse of InsurTech as we know it. Unsurprisingly, neither extreme materialized; what we have in fact observed is that the relative successes and failures in utilizing technology from burgeoning vendors was (and continues to be) highly specific at an individual business level. This was (and continues to be) further amplified at the individual regulatory environment level.
3) Duck Creek Technologies – International Digital Innovation
What’s Now & Next
Denis Connolly, VP, Corporate Development
Advanced insurance technology is already an integral part of the P&C industry, for both carriers and insureds. Getting insurance quotes can be as easy as clicking a button, managing coverage can typically be accomplished via a mobile app, and paper insurance cards are mostly a thing of the past. Insurance technology is poised to mature even more in 2020. While some of these tools are already employed by some carriers, we see them becoming more and more commonplace throughout the industry. In a recent interview in Insurance Business UK, Bart Patrick of Duck Creek talks about the burden of upgrading legacy technology, and the likely impact of the Covid-19 pandemic on the uptake of digital innovation in the sector.
4) Deloitte – Resilient Podcast – Actionable Insights to Help Business Recovery
Technology & Connectedness
Claimatic Team
In this special edition Resilient series, Deloitte shifts their focus to the evolving COVID-19 crisis. From supply chain disruptions and economic scenarios to remote working challenges and crisis response strategies, these episodes feature actionable insights from leaders to help you think through what to do now – and next.
