Deloitte's global "2021 Insurance Outlook" survey explored both the tactics that industry leaders have been following to ensure their foundation remains strong for however long the effects of the pandemic last, as well as the investments they plan to make to position themselves for long-term success. Among the major themes emerging from the survey results:

Expense management was a top priority even before the pandemic, but it is being even more strongly emphasized now among many insurers to offset COVID-19's ongoing impact on their premium volume and investment portfolio, given high unemployment, small business closures, changes in driving habits, and near-zero interest rates.
However, rather than cutting budgets across the board, most insurers are more likely delaying or scaling back non-essential, pre-pandemic investments in part to free up additional capital to fund higher priority projects and hire specialized talent that can help them adapt sooner rather than later.
The need to accelerate digitization and enhance virtual operations turned innovation headwinds into tailwinds at many insurers, driving faster action to deliver within the coming year what might originally have been three-to-five-year transformation plans.
Necessity might have been the mother of reinvention for many insurers during the pandemic, but the speed of change and much greater reliance on connectivity and remote access may also generate a host of new exposures for carriers and their policyholders, particularly in terms of cyber risk.

Technology upgrades in a variety of areas were cited by respondents as a vital element helping insurers continue to conduct business and remain connected with intermediaries and clients while working remotely. Even so, Deloitte's outlook survey found 79% of respondents believe the pandemic uncovered shortcomings in their company's digital capabilities and transformation plans. That rose to 87% among respondents with operational responsibilities, who were probably the most directly impacted.

Special Reports /

Insurers update investment priorities to accelerate pandemic recovery

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