Page 8 - Turkinsurance Digital Magazine

6 interview

what can happen until the end of this year. But the one thing we can tion, we now see that this transition has yielded effective results in
be sure of is the fact that digitalization trend, which has been one many sectors or some related departments which are convenient for
of the results of this pandemic, will continue non-stop even after the remote working. It is possible to say that remote-working or work-
pandemic is over. Insurtech companies that nourish and support this from-home models will become permanent and widespread for some
trend of digitalization to a serious extent will become much more companies as a result of those positive results.
popular in the coming days.
Although there are many companies whose infrastructure can sup-
What kind of new trends could this pandemic create in the port remote-working, this model cannot be applicable or usable in
future, especially considering the insurance products and cus- some sectors or companies. The main reason is the fact that IT
tomer behavior/expectations? What could be on the horizon for infrastructures of those companies or sectors cannot support re-
the future of insurance market? mote-working yet. Covid-19 also accelerated the process of improv-
ing those infrastructures that will soon support flexible and remote
Covid-19 has taught us an important lesson about being prepared working models. Companies now consider digitalization as a re-
for unexpected events. Considering that insurance is a market that quirement, rather than an option.
makes human life more sustainable against risks, we estimate that
awareness about the importance of insurance and being insured will What do you recommend for companies to address the in-
considerably increase. As KMPG, we have determined an approach creased number of cyber-attacks during this term?
of six phases while assessing customer expectations and new trends:
With the breakout of pandemic, ill-intentioned cyber actors have
1- Righteousness: Doing the right thing, acting fairly and in accord- found many opportunities, as many activities have been carried
ance with customer benefits onto digital platforms. During this term when digitalization has in-
2- Solution: Addressing requirements and finding solutions creased, ensuring the redundancy and security of IT infrastructure
3- Expectations: Determining, managing and addressing expecta- and personnel, and monitoring them regularly have become signifi-
tions cant obligations for technology and security managers. It is of vital
4- Time and effort: Simplifying the process of accessing informa- importance to revise the authorizations on networks, servers and
tion and getting basic knowledge for customers systems according to job specifications and ensure that key person-
5- Customization: Understanding the individual circumstances of nel have back-ups.
customers
6- Empathy: Showing that you care and choosing the right emotion- “We are expecting premium production to
al response.
decrease in certain branches, especially in

We can say that righteousness and empathy are the two most im- travel and motor own damage insurance due
portant factor during times such as this pandemic. Real impacts of
this experience which might shape our future will surely be analyzed to the pandemic”
in more detail in the coming days. We estimate that future changes
will be discussed and evaluated within the framework of the afore- Companies wishing to minimize their cyber risks should inform their
mentioned values. employees on topics such as phishing activities and protection of the
confidentiality of personal data. They should prepare case manage-
In this respect, a new market will emerge where parametric insur- ment plans against cyber-attack scenarios during such times and
ance products will become more diversified. Parametric products implement logging and monitoring systems to follow-up cyber-se-
are developed especially for low-probability but high-cost risks. curity cases.
Moreover, policies will be written in a form that can be more easily
understood by customers. These could be insurance products which What are your economic expectations for 2020 and estimations
require policyholders to pay premiums only when they actually use about possible circumstances of sectors in general?
the product, or simple and understandable products developed solely
for the pandemic term targeting short-term aid. Customization was We can say that economic outlook of 2020 is full of uncertainties
already a priority for risk calculations, and this means that more until the end of year. This pandemic is imposing highly negative im-
data is required. pacts on the incomes of companies in most sectors, unemployment
rates in many countries, and most importantly, on human health.
Furthermore, as I have already mentioned, we expect digitalization However, as a part of current normalization process, offices in our
will accelerate in the insurance market, just like almost all other country are being re-opened with necessary precautions; social plac-
markets. In that sense, agents will be digitalized, and as the lead- es that will revive the service sector such as cafes, restaurants and
er of digitalization in insurance market, Insurtech companies will shopping malls have resumed their activities. We can say that we
reach maximum importance. We can say that agents will try to are proceeding towards recovery thanks to this recent development.
partner with Insurtech companies in the near future with the aim of
preserving their positions in the market. We see that sectors that are most suitable for digitalization and car-
ry high importance for human health have had strong outlooks dur-
Are you expecting permanent changes in business manners ing the Covid-19 pandemic. We can say that e-commerce, technol-
around the world, especially following the current work-from- ogy, telecommunications, pharmaceutical, health, and retail food
home trend? sectors will emerge from this crisis stronger. On the other hand,
we feel that sectors such as logistics, transportation and industrial
Following the panic created by the pandemic, many companies manufacturing may experience challenging days for a while longer.
started to work from home. Even if it was a result of an obliga-
Rabia Kübra Kanun / kubrac@bestyayincilik.com