The tracking of citizens has occurred in some countries in an effort to slow the spread of Covid-19 – and one analyst says this and the increasing need to buy digitally during lockdown may be a long-term benefit to insurers.
The major areas highlighted as potential beneficiaries of this effect are the health and life insurance space, believes GlobalData senior insurance analyst Daniel Pearce.
He said: “The wealth of data that will become available following the pandemic will greatly increase underwriting accuracy for such events in the future, allowing for providers across the industry to better mitigate their impact.
“Arguably the biggest benefit will come in the claims management and customer service areas, in the form of increased digitalisation.
“The need for social distancing has forced consumers to become comfortable with virtual interaction.
“As a result, insurers will have the opportunity to move towards an increasingly virtual claims and policy management system.”
There is evidence that the marketing and distribution of policies has already been impacted, with some insurers pausing the sale of new policies in markets.
Travel insurers are one example, as they have pulled products to limit their exposure to claims and protect existing policyholders.
“Yet, despite these negative impacts, the benefits will eventually come to the industry in the longer term,” added Pearce.
“The forced changes in consumer behaviour in lockdowns, such as accelerating the shift towards online purchasing, will result in opportunities for the development of new products focused solely on digital channels.”