Menu
Vitech
Software for Insurance, Retirement and Investment Administration
Search
  • Products
    • V3locity
      Overview
      CoreAdmin
      Digital
      ClaimsCenter
      CampaignCenter
      DataInsight
      Industries
      Group Insurance
      PRT & Institutional Markets
      Retirement
      Public Pension
      Taft-Hartley
      Alternative Investments
  • Technology
  • Services
  • News & Events
    • News
      Events
  • Resources
    • Analyst Reports
      Blog
      Brochures
      Case Studies
      Infographics
      Insights
      Podcasts
      Videos
      Webinars
      White Papers
  • Careers
    • Careers
      Careers in India
  • About
    • About
      Leadership
      Partners
      Customers
      Trust Center
  • Contact Us
Close Menu
March 7, 2022

Group Insurance Post-Covid: The Way Forward

Introduction

As we pass the two-year mark since the start of the pandemic, we all want to believe that Covid is, or will soon be, in our collective rear-view mirror. When the pandemic took hold in 2020, group insurers rapidly pivoted to bolster their online presence, enhance the customer experience, and allocate substantial resources toward remote work. Although the industry did experience some rebound in 2021, particularly in regions where vaccine rollouts enabled more activity,1 future growth and overall organizational stability remain serious concerns. In this week’s blog, we examine some of the immediate strategies and future priorities that insurers are implementing to plan the way forward to regain productivity and sustained momentum.

The Pandemic’s Aftermath

The pandemic’s effect on the insurance industry was notable. From a U.S. life and annuity industry perspective, industry premiums fell almost 8% in 2020, but did bounce back by 8% in 2021.2 The industry will remain challenged by higher mortality rates but may experience growth if companies can continue to accelerate their transformation efforts.3 Group benefits products will likely lead the way.

The Group Insurance Industry’s Response

To counter these challenges, insurers have taken steps to improve the short-term industry environment and align key priorities to address more long-term obstacles.

Manpower

One immediate response has been a planned increase in hiring, due to more business volume and critical staffing needs. A recent Q1 2022 U.S. Insurance Labor Market Study said that nearly three-fourths, or 72%, of companies polled, are planning to increase staff in the next 12 months, particularly for experienced roles in product management and technology.4

Security

Other immediate investments include cybersecurity to counter the rise in cybercrime, especially phishing attacks, as work-from-home environments have made networks particularly vulnerable. More than more than 25% of recent cyber insurance claims are related to remote access being compromised.5

Business Transformation

For more long-term priorities, insurers know that they need to act on the following imperatives for greater stability, vision, and delivery:

  • Realign cost structure and sharpening productivity. Insurers will need to optimize their current business models, capabilities, and structure, as well as align costs and improve productivity.6
  • Supercharge digital transformation. Insurers should further accelerate their ongoing digital transformation efforts to achieve a strong digital enterprise.7
  • Develop new revenue streams. Insurers will need to develop new products that reflect today’s evolving needs, strengthen customer retention, and customer acquisition efforts.8
  • Prepare the workforce for the new world. Insurers must enhance employee productivity, innovation, and engagement for an upskilled and involved workforce.9
  • Strengthen capital efficiency. For long-term capital management, insurers will require stable solvency, stronger shareholder backing, increased investment funds, and improved return on capital.10

Final Thoughts

The effects of the pandemic will reverberate throughout the global community for generations. For the group insurance industry, Covid was a catalyst for powerful transformation. The resulting operational revisions, strengthened customer relationships, and focus on innovation will highlight a new and exciting chapter in the ongoing evolution of group insurance.


1 “Creating value, finding focus: Global Insurance Report 2022,” McKinsey & Co., February 2022 pg. 7.
2 “Facts + Statistics: Industry Overview,” Life/Annuity Insurance Income Statement, 2016-2020, Insurance Information Institute.
3 Ibid.
4 “Technology, Analytics, Claims Staff to Grow, Says Study,” Kaitlyn Mattson, Digital Insurance, Feb. 16, 2022.
5 “Allianz Global Q&A: Cyber Insurance Trends, Kaitlyn Mattson, Digital Insurance, December 2021.
6 “Beyond COVID-19: Five Key Strategic Priorities for a Post-Crisis World,” PWC, 2020
7 Ibid.
8 Ibid.
9 Ibid.
10 Ibid.

TODD EYLER

Todd Eyler is Vice President of Strategic Marketing at Vitech Systems Group. He manages Vitech’s strategic marketing efforts including analyst relations, industry communications, competitive analysis, ecosystem partnerships, and thought leadership. Todd has held leadership positions at top-tier software companies and systems integrators and has extensive experience in identifying/analyzing market trends and aligning business priorities with the right technology.  

Sign Up For Updates

Stay up-to-date on the latest industry news,
digital products and innovations.

    V3locity

    CoreAdmin
    Digital
    ClaimsCenter
    CampaignCenter
    DataInsight

    Industries

    Group Insurance
    PRT & Institutional Markets
    Retirement

    Alternative
    Investments

    Technology

    Services

    News & Events

    Resources

    Careers

    About

    © Vitech Systems Sub LLC 2023. All rights reserved. | Privacy Policy. Vitech refers to Vitech Systems Sub LLC and may sometimes refer to VSG Hosting Sub LLC. Vitech Systems Sub LLC is a separate legal entity from VSG Hosting Sub LLC.