Executive summary :
For insurance leaders, the full impacts of the COVID-19 pandemic will unfold over the coming months, but the rapid evolution of the crisis is forcing organisations to constantly evaluate how they are responding today.
Realistically, most business continuity procedures will prove inadequate. Very few would have planned and provisioned for a global crisis that kept virtually all of their workforce sequestered at home for weeks or months. Because there is no proven methodology for what we’re navigating today, organisations are having to collaborate virtually, sometimes on a global scale, to rapidly adapt business operations, frequently and simultaneously across several businesses on very short time cycles. Some solutions will succeed, and some will not. Others might not work until conditions change. Also, business decisions driven by current situation will create new and unexpected demands on operation risk management.
Recently, several insurance carriers announced premium credits to their auto policy holders due to significant drop in usage. Such decisions will require an ability to process large volume of one-time transactions, in a controlled yet customer friendly manner.
In these conditions, insurers need a more comprehensive yet customisable approach to assess operational risk quickly and in a dynamic manner and chart responses to COVID-19. Organisations should undertake a three step approach to better understand the impact of the coronavirus on their operations, identify high impact and high priority areas, assess new and increased risks, and develop actions to address business critical priorities.
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