Our team shares the highs and lows of increased regulation, an enhanced severity mix and the focus on prevention as we wrap up the past twelve months. This is our reflection on the year that was, and the ongoing challenges our industry must address in the year to come.

1. Unexpected changes to severity and claim frequency

Just as the insurer industry adjusted to the spike in workers’ compensation and casualty claims from the COVID-19 pandemic, we started to see changes in the severity of auto, travel, and business interruption claims. As a worrying trend in high-speed, high-impact crashes coincided with economic downturns and increase in staff burnout and attrition, we were called upon to help several insurers augment their staff. Through flexible staffing models, we helped insurers maintain excellent customer experience in difficult times.

2. A rapidly growing industry

Despite the global shutdown, the insurance industry continued to experience modest growth, but many insurers were faced with the challenge of resourcing new geographic locations they weren’t able to safely access. We stepped in to help several insurers expand their lines of business and enhance their brand, supporting their go-to-market expansion strategy.

3. Prevention as a cure

The industry has well and truly shifted from its traditional reactive roots to a more proactive and preventative model. Policyholders have entered a new chapter of tech-enabled protection from losses, with insurers set to be well-equipped to capitalise on these opportunities. Through data analysis of loss causes, platforms and predictive technologies to forewarn customers about losses and public advocacy efforts to increase preventative behaviour – prevention is the new cure for an insurer’s bottom line.

4. Ramp up of regulation

While some regulatory changes were relaxed or paused at the height of COVID-19, these deferred changes have begun to take effect and insurers must be across how this will change the way they do business. Most new reforms have already been implemented across New Zealand and Australia, but insurers must continue to regularly review themselves to ensure they remain accountable under the new regulations.

So, what’s next? At GB, we have our eyes on the horizon with the backing of decades of data and insights to guide your next step. Choose GB as your strategic partner to not just weather any storm ahead, but leverage more opportunity for your business.

To learn more about how GB can help your business, connect with our experts today.

Blog Author

Jon Winsbury

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