James Dalton, Director of General Insurance Policy at the ABI, gave a speech to the Westminster Forum on the future of the insurance industry post-Brexit and lessons learned from the COVID-19 pandemic.
Starting off on a positive note, Mr Dalton said that insurers have collected over £100 million through the Covid-19 support fund, provided support to tens of millions of customers, developed and implemented new and innovative reinsurance schemes to support the economy, and that ABI members and Lloyd’s expect to pay at least £1.7 billion in COVID-related claims.
However, he said that the pandemic has highlighted an acute expectation gap between customers and insurers. As a result, he spoke about 3 key themes around (i) trust, transparency and product simplicity set against the backdrop of the FCA business interruption test case; (ii) the challenges to public policy driven by the pandemic; and (iii) five key opportunities for the industry.
The insurance industry has always had a problem with consumer trust. However, this was made worse by the pandemic and the business interruption case that followed. The focus now for insurers is to support customers through the swift payment of valid claims, interim payments, and providing clear and prompt answers to customer questions.
In addition, Mr Dalton touched on a number of opportunities for the industry relating to the FCA’s General Insurance Pricing Study, Solvency II, climate change, economic contribution of the industry and insurance post-Brexit.