COVID-19 pandemic
The COVID-19 pandemic has been in South Africa since the beginning of 2020. Since then, life in South Africa has changed so much that some of us are still rubbing our eyes in disbelief. Economic hardship has had a ripple effect into virtually every business area, and we are all feeling it in one way or another. Most companies are heading for the digital approach as much and as quickly as possible. The insurance industry has not escaped the pandemic’s impact and has had to adjust to an ever- and fast-changing world. Read on and discover the challenges facing the South African insurance industry.
Lack of cover worsens 1
Financially struggling clients are cancelling policies or can’t renew them. This is causing the insurance industry to lose clients and business, which could exacerbate the general lack of car insurance cover in South Africa.
Communication has become digital 1
Apart from emails and other messaging platforms, physical meetings have been transformed into digital ones.
What are the models predicting? 1
The total gross-written-premium pool (GWP) is expected to return to its pre-pandemic level by only 2024.
How can the insurance industry survive? 1
Many insurers are following innovative approaches such as installing digitization procedures between themselves and clients. This certainly enhances efficiency. Gone are the days when you physically attended meetings within the industry. Instead, many could be working from home and have meetings operating via the laptop or even the cell phone.
Improvement in efficiency 1
On the positive side, having digital meetings saves a lot of time, petrol, and less fighting against traffic. Clients can interact faster with insurers, thus enhancing their experience.
What approaches is the industry following? 1
The industry is making a digital approach to clients and others its highest priority to tackle the pandemic’s fallout. The industry has developed decision-making processes based on advanced digital tools and even artificial intelligence. The current operating model has to be redesigned to enhance speed and reduce costs. With the vast increase in digital traffic, cyber criminals have also been on the attack, thus triggering increased cyber protection. This digital approach has led to the need for additional new staff, trained in various cyber skills that were not required before.
Disclaimer
Buying car insurance is not straightforward, and hence this article must be viewed as information only. But should you wish to purchase car insurance, please contact a certified, financial advisor for professional advice.
By having the pandemic in mind and knowing how it has affected you financially, Prime South Africa has unique product offerings that will suit your wallet and needs. If you need more information about affordable car insurance, please contact Prime for a quote.
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