Allianz Global Corporate & Specialty’s (AGCS) report, Covid-19 – Changing Claims Patterns, details that with the advent of lockdown, claims for traditional property and liability (most notably in the aviation and cargo sector) have subdued – as have claims related to motor accidents and workplace injuries (as more people are now working from home). However, some lines of business, including entertainment insurance, have surged during the lockdown.
AGCS’ Chief Claims Officer Thomas Sepp noted that the pandemic also impacted standard business interruption claims. “On one hand, the cost of non-Covid-19 related business interruption, caused by events such as fire or extreme weather, fell in many cases, as many manufacturers, as well as their customers and suppliers, either shut down or scaled back their production,” he said. “On the other hand, Covid-19 containment measures have led to longer disruptions and more costly claims in some cases.”
Technology plays a crucial role in delivering an uninterrupted claims service
Covid-19 has reinforced the need for digitalisation of claims handling, the AGCS report also said. Thousands of claims needed to be assessed on an individual basis, which added to the workload of claims experts, many of whom continue to work remotely.
“Technology has played a crucial role in delivering an uninterrupted claims service throughout the pandemic,” Sepp said. “Remote claims inspections and assessments are now possible through satellite, drone or image capture technology and tools such as MirrorMe. Meanwhile, our digital cloud-based claims platform has passed the test of the coronavirus. The trend towards using technology in claims will certainly accelerate.”
Working from home means more cyber risks for employers
According to the report, the growth of home working means that companies may have lower property assets and fewer employees on site in future, but there would be corresponding changes in workers’ compensation and cyber risks – cyber risks have risen during the pandemic, and there has been an increasing number of ransomware and business email compromise attacks reported.
“The growing reliance on technology, shift to remote working, reduction in air travel, expansion of green energy and infrastructure and a rethinking of global supply chains will all shape future loss trends for companies and their insurers,” Sepp concluded.