InsurTech May Offer Insurers a Route Out of Pandemic

The coronavirus will serve as a catalyst for wider adoption of digital initiatives within the insurance industry.
InsurTech May Offer Insurers a Route Out of Pandemic
June 30, 2020

Researchers from Cass Business School say InsurTech may provide a path out of the pandemic for insurers. The researchers say the coronavirus will serve as a catalyst for wider adoption of digital initiatives within the insurance industry. They also said reinsurance and insurance companies should focus on changing the traditional idea of risk as the “second line of defense” into a value-identifying “second line of opportunity.”

Businesses would also do well to place a stronger focus on realistic stress tests and scenario planning. Cass Business School researcher Sarah Ruberry said, “Insurers who can facilitate adequately priced risks through the efficient mining and analysis of data will be better positioned than their peers moving forward.”

READ: Insurtech in a Pandemic: Creating opportunities from threats

“A year ago, the insurance industry would have dismissed the idea of a wholesale working-from-home model and new business not needing to be conducted in person,” Ruberry said. “Covid-19 has created an opportunity and a paradigm shift and similarly, insurers should refocus their Digi-change lens.”


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