The outbreak of the coronavirus has been a stark reminder for the industry to go back to basics – especially when it comes to increasing collaboration with providers and controlling costs.
The COVID-19 pandemic is a risk that took us by surprise, and the world is not going to be the same following this crisis. Everything is going to change and the industry needs to transform and adapt to the new normal in order to survive. Embracing new technology and modernising our tools are key parts of the (re)insurers’ strategies in the post-pandemic phase.
Nevertheless, despite the importance of adopting new tools, the outbreak of the coronavirus has been a stark reminder of the necessity for the industry to go back to basics, especially when it comes to increasing cooperation among providers and controlling costs.
Collaborative effort is required for insurance and reinsurance companies to work together so that they can help clients and policyholders overcome this challenging period. This is particularly in the area of cost control where (re)insurance rates have increased notably as a result of the pandemic, thereby putting more pressure on clients at a time when they seek to reduce costs, and providers as they strive to maintain a decent volume of business.
The hardening of rates is a development which the industry has been waiting to materialise for too long, but it comes during a time of adversity when all parties, including clients and providers, are trying their best to survive mainly by controlling overheads. In general, any future strategy should focus on proactively responding to challenges, taking proper decisions and resetting priorities.
Business survival strategy
Our strategy for the coming period is based on planning for the worse. We have put in place a lot of business survival steps to make sure APEX will be around for years to come.
As a company, we have put together a committee comprising top company executives to implement a plan on how to survive during and post-COVID-19. The outcomes have been great. We have reduced our expenses as much as possible without cutting our employees’ income. We still hold our weekly meetings online with all departments and branch offices. We have also asked all business development executives and brokers to make weekly audio and video calls to their clients and potential new clients. This has been well coordinated, executed and reported.
Our motto is to work hard to remain the ‘partner of choice’ and therefore, we have become our partners’ outsourced reinsurance department. In that respect, we offer them a lot of training that we used to do at either the clients’ premises or ours. Due to COVID-19, we have created an online meeting platform and constantly endeavour to provide the best service at all times. We started offering our partners all types of online training courses free of charge, which have been well appreciated by the whole industry.
Working closely with partners
The most important part is working closely with insurance and reinsurance companies to bridge the gap as reinsurance prices have drastically gone up. It will be very hard for insurance companies to explain the huge hike in rates to their clients in light of the deteriorating economic situation that the pandemic has created. We are also trying to get PPW extensions from many reinsurers as several markets are either still in lockdown or partially open. We are also working on developing products that will provide coverage for COVID-19.
It has been a time for revising strategies and business techniques. A major finding from the impacts of the pandemic is that taking care of and adhering to ‘basics’ continue to be an imperative pillar in our industry. We have been doing what it takes not only to survive, but also to flourish during this exceptional period, which we are sure we will, thanks to the trust that our colleagues and partners have in each other and in us. M