This archive report was first published on 19 May 2020.
As the COVID-19 pandemic continues to spread globally, governments are enforcing drastic measures to contain its spread. The pandemic's trajectory is unpredictable, and the main focus now is flattening the exponential curve of infections through public health measures.
Health insurers are facing a significant challenge in minimizing disruption to businesses and clients. A recent report by Deloitte reveals that the biggest dilemma facing insurers at the moment is how to keep afloat and retain clients.
The International Monetary Fund (IMF) is warning that the new coronavirus COVID-19 pandemic may trigger a global recession in 2020. However, instead of painting a bleak picture of the industry's prospects, a far better approach would be to explore how insurers can cope with the prevailing situation in order to safeguard their financial health and sustain client relationships.
Medical underwriters must be part and parcel of ongoing efforts by the government to stop further spread of the disease since it affects both existing and potential clients. This includes ensuring that interactions with clients limit the spread of the virus.
As they say, never waste a crisis. The COVID-19 crisis offers a window for health insurance providers to ramp up their digital capabilities so as to survive the present challenges and more crucially, position their businesses for rapid recovery in the post-COVID era.
Going fully digital will increase efficiency and reduce costs, thus making premiums more affordable, while generating more revenue for the underwriter. Automating processes will help minimize claims-related fraud, make it easier to track claims, and reduce the claim settlement period.
With social distancing as the new norm, underwriters will increasingly rely on online tools to interact with clients, unlocking creative ways of engaging customers. Using digital apps, clients can track their medical expenses, and data analytics will help insurers understand their customers better.
The writer is AAR Insurance Kenya Managing Director.
