Source: asiainsurancereview.com

New survey results released by Information Services Group (ISG) revealed that most insurers in Europe expect demand for digital products and services to increase significantly in response to the COVID-19 pandemic.

The survey results are detailed in a report titled ‘COVID-19 Pulse Check: State of the EMEA Insurance Industry’. ISG conducted the survey in collaboration with Infosys and interviewed 290 decision-makers with insurance companies from six European countries in late May and early June.

According to the survey, 86% of European insurance executives expect customer behaviour to change significantly due to the pandemic and over 95% fully or partially agree that their customers want more digital products and services. More than nine in 10 of respondents also believe that the COVID-19 crisis will accelerate digital innovation in the industry.

Meanwhile, 64% of respondents assume that the effects of COVID-19 on their businesses will last longer than a year. Another 21% expect the effects to last between seven and 12 months.

More than 60% of those surveyed expect some of their business partners to disappear from the market as a result of the COVID-19 crisis even as other companies take their place – with the new firms being a combination of vendors, InsurTechs and IT service providers. “The current crisis has left many insurance customers unsettled. As a result, many insurance companies are questioning their long-established business relationships,” said ISG financial services and insurance industry practice (EMEA banking) partner and co-lead Bryn Barlow.

While survey respondents expect major changes because of the COVID-19 crisis, most expect traditional sales channels to remain in place. In Europe, over half of all insurance policies are currently sold through insurance agents and about 84% of those surveyed believe their companies will continue to sell through multiple channels. Only 16% of respondents expect a significant push toward direct insurance sales.