2021 is set to be a year that no one forgets, with COVID-19 forcing disruption on every business, industry and person on the planet. The insurance industry received one of the most significant blows due to the losses associated with payouts relating to the pandemic. The Lloyd’s of London insurance market forecast has estimated that the coronavirus could cost the global insurance industry $107 billion in underwriting losses. Even as things start to settle in 2021, we expect the industry will continue to change and adapt to the new normal.
Despite the chaos, the pandemic has highlighted the sheer importance of digital transformation. Many financial organizations were humbled by their lack of digital process, while consumers gained newfound digital prowess. The insurers that lead from here on will be those that transform to enable digital ecosystems that place insurance at the heart of how consumers manage their financial lives. In 2021, we expect insurers will focus on this and invest in their ability to keep up with the needs of their customers.