What the insurance industry can expect in 2021
Almost every industry has been impacted by COVID-19 and the resulting lockdowns, travel restrictions and social distancing measures that have changed the way people live and work. For the insurance industry, impacts have included: a surge in health, travel, and business interruption claims; pressure on the premium pool because of declining business activity; and dramatically reduced face-to-face customer interactions. Insurers are also under regulatory pressure to manage their credit risk exposure and prove their ability to weather the immediate and ongoing economic impacts of the pandemic.
As 2021 approaches, there are three key issues facing insurers.
Increased security and compliance pressures in the remote working environment.
More legislative safety requirements with regard to people movement and contact tracing.
Compliance with the 2020 General Insurance Code of Practice that requires insurers and their suppliers and distributors to build consumer trust through honesty, transparency, efficiency and fairness in their dealings with customers.
To address these issues, we’ve seen two primary trends developing in the motor insurance industry.
1. Increased investment in flexible technologies that support remote work: organisations are increasing investment in cloud-based tools but not every solution lets different user groups operate remotely without being connected to their office network. EstImage Motor, for example, has capabilities that can restrict users working from home to only access the software when connected with company networks, while letting other users working on the road access the software directly from the public cloud. This freedom of access can improve productivity and efficiencies, especially when the company VPN experiences high demand.
2. Increased uptake of secure mobile applications: cost, time, and risk profile can all impact the level of security that solutions have, yet organisations can’t afford to be complacent considering the current heightened cybersecurity risks. Not all cloud-based and mobile applications provide the same level of defence. With the growing need for mobile workplace solutions, there is increasing demand for software such as EstImage that delivers a higher level of security across mobile and web applications.
While this year has demonstrated how difficult it can be to predict the future, we anticipate remote work and increased workplace flexibility will continue, and there will be ongoing investment in technologies that help organisations maintain business continuity with geographically dispersed work teams. As part of this movement, insurance companies will continue to integrate solutions that use virtual and/or remote assessment features to ensure staff can remain productive regardless of their location. Similarly, there will be increased investment in alternative communication channels, empowering staff to respond to customers using technologies beyond office phones.
For repairers that work with insurers, we will also see an increase in mobile repairs, as more companies invest in technologies that facilitate repairs outside of traditional smash repair workshops. Similarly, there will be more online tools that let customers complete insurance claims without needing assessments in person.
Growing investment in technology solutions that streamline insurance claims and repairs for all parties requires complementary robust security solutions to ensure customer and company data is protected. To learn more about new industry-specific technologies that will support claims assessments and processing in 2021 and beyond, contact the EstImage team today.