Pandemic implications

The second factor was the pandemic. The insurance industry was collectively on the path to digital transformation. Even before the pandemic, many industry veterans thought that insurers were moving faster than ever to inject innovation into their organizations and spread digital activity across the enterprise. Enter the pandemic and the resulting lockdowns, work-from-home mandates, and dramatic shifts in everyday life and work patterns. Insurers quickly discovered the digital gaps that needed to be addressed to enable remote digital interactions with policyholders, agents, employees, and claimants. In addition, the need to accelerate the digitization of operations, increase the levels of straight-through processing in underwriting and claims, and hasten the automation of tasks were underscored. To address these requirements and compress digital roadmaps into shorter timeframes, insurers and distributors alike took three actions:

They reprioritized internal projects and refocused resources.
They sought out InsurTech solution partners to help them deploy solutions and fill the digital gaps faster.
They looked for acquisitions that would help them scale faster and bring new capabilities to the enterprise.

All these factors and the actions being taken by insurers are likely to continue through 2021 and beyond. Those who think the investments and M&A activity will slow down now that the prospect of getting past the pandemic is pending — think again and fasten your seatbelts. If anything, digital transformation and the uber-competitive environment will continue to result in blockbuster headlines as the industry is reshaped.

Special Reports /

Insurance M&A: Unraveling SPAC mania and InsurTech investment

Related Stories

Recommended For You