After the immediate impact of COVID 19 subsides and the restrictions begin to ease, it has become clear that we will not be going back to the way things were for quite some time. Many people are now working from home on a long term basis, if not permanently. People are thinking more about health insurance and what kind of protection they can get if we experience another pandemic. Businesses are also dealing with changes that could see their insurance needs change dramatically. What do we believe will be some of the trends and changes in the world of insurance as a result of COVID 19? Here are a few predictions.
Our Appetite for Insurance Will Increase
This prediction particularly applies to life and health insurance products. We have already seen a spike in requests for quotes for these types of products as people face the reality of the impact of COVID 19 or another illness. In addition to an uptick in people looking for health-related insurance, people are making inquiries about their existing insurance products, looking for ways to save or modify their coverage based on their new lifestyles. The popularity of usage-based insurance is surging for the same reason.
Businesses Will be Looking for More, and Less Protection
After the SARS outbreak in 2003, some insurance companies began offering pandemic-related business interruption coverage. However, SARS didn’t have the same far-reaching impact we are experiencing now. Most companies lost sight of the risk and opted-out to reduce costs. Businesses will likely take a second look at insurance products that can protect them against forced shutdowns and other dramatic changes to their operations.
Businesses will also have to contend with higher risks relating to the health and safety of workers. Experts in the industry expect that workers’ compensation claims relating to COVID 19 will increase, which will eventually lead to higher premiums for employers. While at the same time, companies may have a reduced need for liability insurance that protects property and contents since their workers are no longer in the office.
Working from Home Raises Many Questions
Working remotely is already raising concerns about where responsibility lies between individuals and businesses. Home and condo insurance does not cover working from home, and business insurance does not tend to cover remote employees. Both employees and employers should be aware of the risks they are taking on in the new remote working world.
Opportunity for More Realistic Insurance Products
This should be an interesting time for the insurance industry as it considers opportunities to modify or create new products that do more than simply limit the insurance company’s risk. For example, after SARS, exceptions were added to travel and health insurance policies for pandemics and public health emergencies. This time around, insurance companies could consider products that benefit customers by paying out in the event of a pandemic. Products that are a better fit for our new lifestyles and ways of doing business would also be welcomed.
If there is one thing that the COVID 19 pandemic has taught us, it is that things can change quickly and without warning. Insurance is our business, and we are committed to staying in the know. If you have concerns about your current insurance coverage, are looking for better protection or just have some questions, please feel free to reach out to us.
