The Covid-19 pandemic brought with it a scenario that no one expected, resulting in new challenges for the entire insurance industry.
The Covid-19 pandemic brought with it a scenario that no one expected, resulting in new challenges for the entire insurance industry. However, each region will overcome the crisis according to its capacity to absorb the impact and the capacity of insurance companies to adapt to this reality. That is why the reinsurance market reestablishment with products according to the needs of policyholders and the adoption of digital tools will be more relevant than ever.
The outlook for the global economic and insurance landscape explained in the Swiss Re Institute’s latest sigma publication, “Building back better:
The “Global economic and insurance market outlook for 2021/22” shows a modest recovery of the industry in 2021 and 2022, following a strong rebound in the third quarter of this year. But the pace of recovery will differ by region, even as global progress on the Covid-19 vaccine is likely to allow for a gradual normalization of economic activity.
Projections show that income losses and poverty in Latin America will increase substantially. The protection gap will undoubtedly increase, affecting the resilience index.
The insurance and reinsurance industry needs and can respond with products that are more tailored to users’ needs, with more efficient distribution models and digital tools to provide a better experience for consumers. The use of data and new behavioral analytics will improve companies’ sales, underwriting, operational and management processes, so digital transformation is essential.
At Swiss Re, we help our clients overcome the technical and commercial challenges that have arisen in this unprecedented context. We work to address the challenges of digital transformation, data analytics and a better understanding of changing customer behaviors. We create tailored products to contribute to a more resilient world that can meet the economic challenges of the coming years. The end of 2020 and the beginning of 2021 represent a great opportunity for the sector to realign and improve collaboration between public and private industry, and society to make the world a more resilient place.
