Some market segments will suffer more than others. All types of voluntary insurance, especially life insurance, accident and illness insurance, voluntary health insurance, individual property insurance, and motor hull insurance are traditionally considered the most vulnerable sectors. Third party liability insurance segment will experience a drop in demand less than others.
The evident forecast is that we will see a significant increase in online sales in the near future, even in those segments they have not been particularly used before. Today more than 90% of Russian insurance companies use Internet solutions when concluding contracts in one way or another. Over half of insurers allow apply for remote settlement of an insured event.
The share of online sales and after-sales services in the insurance industry will only increase in the future, as the experience of developed countries shows. This process will be accelerated by the advent of marketplaces and insurance aggregators.
There are, however, less obvious effects of the crisis, in addition to further digitalization of sales and “after-sales services” in insurance. Despite the general decline in demand, we can expect an increase in interest in products related to protection of life, health and medical care. Earlier, Russians were more concerned about insuring property risks associated with loss of tangible goods, what “can be felt”, real estate, automobiles, etc. Health in this sense was not a priority. Products such as voluntary health insurance policies were most often issued for people by employers. Now, people began to think more about the need for life and health insurance, and receiving qualified and timely medical care. There is no doubt an unfavorable epidemiological situation pushes them to these thoughts.
Thus, the demand in the insurance sector is being transformed towards a more conscious consumption, an understanding of life and health value appears. Taking into account the current situation the result of this process will be an accelerated development of telemedicine. We, moreover, will see its merger with tele-monitoring systems.
Some people may feel psychologically uncomfortable (“Why would someone monitor my health in real time?”). Given that we all now exist in a new reality – social distancing, access control system, telephone billing, video tracking, and so on, wearing such gadgets is unlikely to make a significant difference in our lives. Therefore, it makes sense to take advantage of everyday actions, including financial ones.
Photos are from open sources.