Insurance industry expected to have more agile workforce

However, the COVID-19 pandemic accelerates the need to think about the ‘future of work‘ strategies. Therefore, the evolution of insurance companies’ …

The insurance industry is likely to emerge from the COVID-19 pandemic with a more agile, cost-effective and high-performing workforce.

Most of the insurance industry continues to see a significant downturn, primarily because of a strain on investment portfolio due to a low-interest rate environment, increase in direct claim costs, delayed payments, decreased premium volume, coverage disputes and economic recession according to a blog written by Willis Towers Watson (WTW) executive compensation practice associates Tony Toury, Arpha Suwansatisakorn and David Sims.

As of the second-quarter earnings, expense management and smaller claim pay-outs have proven to be a remedy to declining revenues, said the blog post.

However, many companies reported anticipating an uncertain environment in the coming 12 to 18 months and intend to focus more on operational and cost efficiencies.

As it relates to human capital, some companies pledged not to lay off any employees at all while others have gone through pay and/or workforce reductions. In the short term, these actions are said to be beneficial to the bottom line.

However, the COVID-19 pandemic accelerates the need to think about the ‘future of work’ strategies. Therefore, the evolution of insurance companies’ operating models must include changes to how and where work gets done, especially as more employees will expect to work from home more regularly.

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