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The coronavirus will have a big impact on the insurance and reinsurance industry over the coming weeks and months as it affects most insurance lines, from health insurance to commercial insurance, simultaneously across the globe. This correlation of costs will also represent an unprecedented challenge for reinsurers. On top, substantial asset returns have vanished as markets crashed in recent weeks.
In the face of this crisis, PwC's insurance experts have joined forces globally to discuss tactical measures taken across the globe, act as sounding partners for our clients and help find attainable solutions.
As of the end of March, insurers in Switzerland have taken initial action to enable remote work for employees and issue a first message to customers. Following the implementation of business continuity plans, and with no relaxation of restrictions in sight, an increasing number of companies are now looking for ways to improve the current situation. Below we have summarised our insights into the most common concerns in the market.
As businesses are facing income losses and employee absences, they are looking for information about their insurance coverage and are issuing claims for their downtime. However, as agencies are closed, the primary channel of most insurers is limited to remote work and the "modus operandi" is disrupted. One powerful measure has been proactive communication to customers to provide guidance in these uncertain times. Another tactical move is the adaptation of existing processes and protocols. This will ensure the continuity of processes despite the limitations posed by the current crisis, such as third parties being unavailable (e.g. doctors or preferred car shops).
Our productivity and digital experts are happy to share their take on digital solutions and operational excellence with you.
Employees of insurance companies are feeling a big impact as agencies are closed and client advisors are facing a high number of requests, while often working remotely. Their empathy and contact with customers are decisive factors in customer satisfaction and churn rate.
Therefore, many clients, as well as PwC Switzerland, have launched communication and collaboration tools to support the activities of the workforce and initiated internal communication campaigns that address the pain points and concerns of employees.
Our People & Organisation team advises insurers across Switzerland on solutions that support their workforce.
Both reinsurers and insurers have to expect insurance losses, as well as a reduction in capital returns, representing a major challenge for liquidity management and the finance function. What can you do to monitor, mitigate and report on the risks and uncertainties that lie ahead?
Get in touch with our Finance team, which works with companies on tactical short-term and medium-term solutions.