Page 5 - BIPAR Annual Report 2020_EN

Foreword

Dear Reader,

As we continue to navigate the Covid-19 pandemic and prepare for a post-pandemic world, three critical issues are emerging the digital needs and wishes of their clients. The human/digital mix is adapted on a case by case basis to the needs and wishes
in the insurance sector: resilience, sustainability and digitalization. of individual clients. Intermediaries are correct when promoting the hybrid (human/ digital) approach and when calling upon
politicians, regulators and rule makers that their policy in terms of digitalization should target helping the economy and social
In its statement of 1 April entitled “EIOPA urges insurers and intermediaries to continue to take actions to mitigate the impact cohesion but should not be an objective in itself.
of Coronavirus/COVID-19 on consumers”, “EIOPA welcomes the initiatives already taken by insurers and intermediaries to
support and assist consumers, and the consideration being shown towards consumers affected by the Coronavirus/COVID-19, The sanitary crisis has put in the spotlight another advantage of the geographical spread of our operations. Thanks to the
including those who are particularly vulnerable”. From our side, as intermediaries close to our clients, we just do our job: professionalism of intermediaries all around Europe, the continuity and resilience of intermediaries and insurers was proven.
helping clients in difficulty. Intermediaries have been able to continue to provide their services remotely, which under normal circumstances would have
been provided from a central place with no diminution of standards. IDD, Solvency II and the related instruments have been
Our colleagues in the insurance chain, insurers, risk managers, financial advisors and claims adjusters and their teams proven to be robust systems in the storm of the pandemic.
continued to do what they have always done. From the intermediary side, we also assisted, more than in normal times,
insurers who faced challenges themselves in re-organising the work of their teams (under Covid-19 preventive measures) by The reality of intermediaries working for both parties in certain areas and creating efficiency (not only but also thanks to
offering additional assistance in the extraordinary circumstance that impacted the industry and clients. appropriate human/digitalization mix) in the process, is often referred to as a potential source of conflict of interest. Recent
rules regarding conflict of interest applicable to intermediaries and transparency have addressed these concerns both real
Our clients, in all segments of the economy received answers, as far as possible, to the queries they raised arising from the and imagined.
crisis. For clients of intermediaries, assistance, even under Covid-19 circumstances, was, as usual, one phone call or one
email away. For many it was reassuring to be able to share some concerns - not always strictly insurance related but Going forward, we have to learn the lessons from the Covid-19 crisis. BIPAR and many national associations are
also, for example, in relation to government assistance. Those who work with intermediaries have experienced involved in cross-sectoral debates with governments, the Commission and EIOPA about the lessons learned,
once more that they were accessible and supportive. Intermediaries continue to liaise with all stakeholders, about how governments (possibly in public-private partnerships) can organise emergency measures when this
clients, insurers, regulators, and governments to try to address the questions that have arisen from this or a similar crisis happens again.
unprecedented crisis. This work is ongoing.
In parallel, the flagship initiatives of the (new) European Commission continue to be developed: debates
Those who are used to working with intermediaries know that intermediaries are stewarding them are ongoing in the sector about artificial intelligence and its use, sustainable finance, cloud outsourcing,
in the management of risks, be they personal or business related. However, this year’s events have EUROPEAN cyber resilience, autonomous cars, but also the reviews of MiFID II, IDD and Solvency II, the Mortgage
created a crossroads where a crisis of global proportions has had repercussions for all aspects of Directive and many other European and national rules which have a significant combined impact on our
society and business, which will need to be evaluated over time. Intermediaries will be at the forefront operations.
of this evaluation learning lessons from the existing crisis and producing answers where possible for AFFAIRS
events of a similar nature which may arise in future. The simple reality is that insurance cannot meet A backdrop of the pandemic is the need to reassure people and entrepreneurs (large or small) over the next
all risks arising from catastrophes such as Covid-19, however it may have a role to play in future public- years. Intermediaries and the sector will have to deal with the challenges of “new risks” pandemics, cyber,
private partnerships which may provide at least partial solutions. climate change. Our decentralized business model (with the right mix between technology and people) can
help to assist the entire economy in a gradual, orderly paradigm shift of society we are experiencing.
Intermediaries, brokers and agents, have long invested in and been at the forefront of digitalization to make
processes (which clients do not see) more efficient - helping to keep insurance affordable and accessible to It is going to require more targeted solutions, public-private partnerships, more collaboration across all
as many parts of society. Intermediaries often provide a local presence in a society that has become ever more stakeholders and supervisors, regulators and politicians, and an even greater focus on the needs of consumers
centralised and remote. In addition, intermediaries fashion and tailor-make insurance and investment services to and entrepreneurs. It includes considerations about liability related matters such as sanitary safety, employment, SMEs’
serve individuals, families and business. This is achieved by face-to-face combined with digital tools. Intermediaries are a innovation, digitalization and sustainability, regulation, supervision, competition. Increased productivity and efficiency so that
“touch point” for individuals and businesses to address risk mitigation both via insurance and through financial planning. consumers and business continue and have access to insurance (either privately or publicly).

It is frequently the locally or decentralized services of intermediaries in combination with the centralised administrations of But…
insurers that have proven, in these exceptional circumstances, to be a suitable model which can be built upon for the future.
This has often been described in the business world as “glocal”, global reach with local delivery. Insurance agents and brokers (and more recently financial intermediation) is a 300-year-old profession built on serving
consumers and entrepreneurs. As a global activity, 100 percent focused on clients. The sector provides the real people in the
Being close to a client either digitally or physically is what being an intermediary is all about. Local intermediaries with well- real economy with integrated solutions that combine insurance and preventive advice on a no cure no pay basis. The network
trained people who are closely interconnected with the local social and cultural life. This is why they are such a successful and of hundreds of thousands local people helps clients in administration and understanding difficult issues. We continue to invest
enduring distribution system. Intermediaries themselves, very often smaller or self-employed understand the needs of their in technology, often together with insurers and clients. We help clients to increase their productivity and entrepreneurship
clients in the SME sector. at human level. With this as a starting point, we commit to continue to contributing to a robust assessment of the impacts of
relevant financial and economy policy goals in relation to sustainability, social welfare, and digitalization and have great hope
Insurance intermediaries are highly regulated for their core activity and supervised for AML and data protection. Arising from for collaborative solutions to enable a sustainable insurance world for the years to come.
that highly regulated environment they are aligned with initiatives such as sustainability (ecological, social and governance)
embedded in this European Commission’s work plan.
Local insurance agents and brokers, such as their larger colleagues who serve the international business community and Juan Ramón Plá Paul Carty
larger companies are all increasingly investing to become an even better partner of their clients by adapting their services to Chairman EU Committee Chairman

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