COVID-19 has accelerated change in insurance claims
Specifically, the company details how latent changes in both society and the insurance industry have been accelerated, and how the new business paradigm will continue to shape claims trends.
The pandemic’s effect on commercial and specialty insurance has been significant, as Thomas Sepp, Chief Claims Officer at AGCS, relates from the company’s own perspective:
“The pandemic is certainly one of the worst loss events for the insurance industry in history; claims could be as high as US$110bn in 2020, according to Lloyd’s estimates.
“AGCS alone has reserved about €488mn (US$571mn) for expected COVID-19-related claims, especially for the cancellation of live events and the disruption of movie or film productions in the entertainment industry.”
Changing industry patterns
However, Sepp notes, the immediate financial repercussions of coronavirus, though severe, are not as existentially threatening as the unanticipated shift in insurance industry patterns.
While some forms of risk have experienced a reduction owing to lower overall activity levels, other areas have grown significantly. Sepp postulates that the ‘new normal’, in combination with other factors, may be a harbinger for an entirely new way of operating.
“Together with climate change and global warming, the pandemic may be the prologue to more far-reaching and disruptive risk changes in years to come,” he said.
AGCS’ report identifies changing claims trends across the following insurance lines:
- Property and Business: The factory ramp-up/ramp-down process can be unpredictable, especially as companies restart after months of inactivity with the threat of potentially being shut down again.
- Liability and Directors & Officers: Businesses are needing to stay vigilant to remain COVID secure; any infraction or employee outbreak could result in litigation against them.
- Aviation: Similarly, AGCS relates that some airlines have been sued for cancelled or disrupted flights, adding uncertainty as to the best way of operating in the current conditions.
- Digital claims handling: Spurred on by the impracticality of conducting in-person assessments, remote claims inspections of natural disasters and industrial accidents are now possible.
This latter point is, perhaps, the most significant. At a time when traditional working methods no longer sufficed, insurance was able to counter a severe handicap by utilising digital technology.
The Ultimate FinTech & InsurTech LIVE Event
From October 12th-14th, 2021, BizClik’s FinTech & InsurTech event will bring together influential executives from around the world. Streamed live from Tobacco Dock, London, this three-day event will be an excellent way to finish the year strong, gaining the confidence your company needs to move forward into the future.
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Already confirmed speakers include Colin Payne, VP & NextGen FS Global Lead at Capgemini; Dipu KV, President and Head of Operations & CX at Bajaj Allianz General Insurance Company; Bryan Caroll, CEO at TNEX; and Lucy Demery, Managing Director at Barclays.
The event will include:
- Keynote addresses from respected industry leaders
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Meet the Speakers
Each week, from now until the event, we’ll be announcing the latest speakers who are set to grace our physical or virtual stage, prepared to share their knowledge and insight with attendees.
Our second batch consists of:
Currently the Senior Vice President of Business Development & Fintech for Mastercard UK & Ireland, a position he’s held since 2014, Abraham describes himself as “a proven and successful senior sales leader with experience across a wide range of industries, sectors, and channels.”
Graduating from the University of Northampton in 1994 with a BA in Economics and Law, he worked for nine years at Sainsburys - eventually responsible for banking the company’s revenue and running its ATMs - and then Barclaycard for three years as Head of Client Management. In 2007, Abraham became VP of Client Management at American Express, and then VP and GM Global Supplier Relations EMEA in 2012.
In his current role at Mastercard, Abraham is accountable for the acceptance of all payments and products through all channels, devices, and technologies across UK and Ireland. In addition, he oversees the deployment of innovative new payment tech within the region.
Fraser-Hawkins’ role as CEO, UK Corporate, at Marsh McLennan is the continuation of a long and successful insurance career, which has included being London Sales Director for JLT Group and Branch Director for Willis Towers Watson.
Marsh prides itself on being a company that hires top-tier talent, does work that impacts peoples’ lives, and offers its employees the opportunity to make a difference. This is clearly an attitude that aligns with Fraser-Hawkins’ own values; regarding the insurer’s UK Young Professionals initiative, a support network to help young professionals in their development, he said:
"I am passionate about developing talent and our Young Professional CRG provides a brilliant community for our Young Professional colleagues to discuss key issues relevant early in their careers, as well as an environment to promote the skills, learning and network for success."
Massaro is currently the CEO of Boston fintech Flywire, a role he took on in 2013. He first joined the team in 2012 as VP of Business Development, but it wasn’t long before his entrepreneurial skills were redirected to leading the entire company’s high-growth strategy worldwide.
An expert in domestic and international payments and billing, enterprise technology sales, strategic alliances, enterprise software, SaaS, product management and marketing, and much more, Massaro is a consummate finance professional whose credentials befit the leadership of a prominent global payments fintech.
His previous positions include Consultant at PwC and Product Line Manager at Oracle, and he maintains a Mentor role at startup accelerator MassChallenge. He graduated magna cum laude from Babson College with a BS in Information Systems and Finance.
This event is set to be one of the year's most unmissable. If you want to get leading perspectives on the future of fintech and insurtech, go to Eventbrite and purchase your tickets now.