7 August 2020
The IFoA and FTI Consulting’s Global Insurance Services practice recent webinar, Insurers – How to Win on the Rebound, saw Angela Darlington (CEO, Aviva UK Life) and Lance Burbidge (Chief Investor Relations Officer, AIA) join FTI Consulting’s Graham Handy and Neil Reynolds to discuss the impact of COVID-19 on the insurance sector and how insurers can position themselves for future growth.
Current state of play:
Industry-wide, insurance operations and service levels have been upheld; regulatory and other communication and good governance were maintained at a necessary level; staff were looked after, and active programmes of change and investment kept on track. Now, attention has turned to the way forward: recapitalising, changing strategy or operational models where necessary and positioning for any opportunities that arise.
Angela Darlington: “We have done things that we didn’t think that we could do in timescales that we didn’t expect.”
Discussion focused on the positive features of a challenging time for insurers. People had a sense of purpose and focus. Businesses kept running, ensuring that customers could have their claims paid. Now that the adrenaline has worn off somewhat, the industry is facing some uncertainty going forward.
Key future opportunities considered were:
- Affordability versus awareness of the need to protect one’s family
- Digital opportunities for Independent Financial Advisers (IFAs) and distributors
- Increased flexibility in ways of working.
Reminding society of the good that insurers do:
The future will require a focus on product design and whether it is better to be comprehensive on coverage or on accessibility to all. While insurers can be proud of the protection they provide, it is time to challenge ourselves on better ways of doing so.
Lance Burbidge: “It’s been very clear that insurance is seen as a positive service across most of our markets. People do rely on insurance in case of catastrophe.”
The pandemic has brought some issues to the forefront, including a renewed belief that insurers have a strong sense of purpose within the community they serve. Each insurer is only ever as good as the insurance community, and discussions focused on the need to be careful about building and maintaining trust across the market.
Day-to-day focus
The panel considered the extent to which existing processes have served insurers well during the crisis. While rapidly changing operational realities required agile and adaptive people, in many areas, established ways of working and associated governance served us well. However, looking forward, there will need to be an increased focus on maintaining operational efficiency in a suddenly very different world.
Graham Handy: “We’ve seen that economic and operational pain can come much sooner than expected as sudden policy positions are taken by governments.”
Stress and scenario planning was identified as a key area needing improvement. Shifts in risk appetite and risk tolerance, as well as an increased consideration of emerging risks such as climate change, were identified as possible future focal points as the insurance industry emerges from the COVID crisis.
Watch a replay of the webinar
A recording of the seminar is available to view on the IFoA's Virtual Learning Environment or on the IFoA's YouTube Channel.
FTI Consulting’s ‘Winning on the Rebound’ insights