Our response to COVID-19
While our primary duty as an industry and as a market is to pay our customers’ claims, these are unprecedented times which call for a more concerted market response.
On 1 July 2020, we published a report entitled Supporting global recovery and resilience for customers and economies: the insurance industry response to COVID-19, together with a supplementary document, Open source frameworks for systemic risk.
The solutions and frameworks within this Report have been developed to respond to an urgent global need for the insurance industry to do more to help protect society as it recovers and prepares for an uncertain future. We have developed this in partnership with our Global and UK Advisory Groups which include a number of the world’s largest insurers, as well as feedback from executives and experts across key global industries who have detailed some of the challenges they face as they begin to recover and reopen.
The Report sets out three proposed ‘open source’ frameworks that are freely available for application around the world, two of which require government and (re)insurance industry partnerships. If implemented, these three frameworks could provide customer protection for further waves of COVID-19 and other future pandemics, as well as strengthening societal resilience against future systemic catastrophic events.
On 12 October 2020, we published our second report in our ‘The insurance industry response to COVID-19’ series, Building simpler insurance products to better protect customers.
Insurance plays an essential role globally for society – by providing financial relief to customers during challenging times, it helps people, businesses and economies recover from unexpected disasters. For many, this worked as intended during the COVID-19 pandemic. However, in some instances there has been confusion.
The recommendations set out in our second report address the urgency with which the global insurance industry must invest and focus on clarifying and simplifying its products. Doing so will mean customers have improved understanding of the cover they have in place and the most relevant protection for the risks they face. While product complexity presents a challenge for all customers, the need is particularly pressing for small to medium-size enterprise (SME) customers, who make up a substantial proportion of insurance policies sold globally but who typically have significantly less access and resource dedicated to risk management than larger corporate firms.
As the COVID-19 pandemic continues to devastate economies and communities, and with impacts requiring resources that can only be accessed by governments, both reports seek to present potential solutions to address the many complex challenges ahead.