Page 16 - Insurance Times April 2021
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entire process of purchasing the policy  impact to this business line will be felt  Jazmin Chong, Insurance Analyst at
         can be completed by just using the  over time, as business owners would be  GlobalData, comments, “The Brexit
         Paytm app, eliminating the need for  very interested in policies that include  transition period ended on 31 December
         any manual documentation. It was   pandemic cover. This product would  2020. Since then, trade into and out of
         convenient for customers to sit back  likely have scored even higher had  the UK has been held up by border
         and get insured without any hassles.  there not been disputes around  delays, especially in France and the
         Paytm has approximately 450 million  whether insurers should pay out on  Netherlands. As a result, long waiting
         registered users, who could avail this  COVID-19-related claims.”     times at the UK border have resulted in
         service.                           Perhaps the most surprising result of  the increased damage of goods in transit
         Ms Tandon concludes, “The digital  this poll is travel insurance coming in  related to stock deterioration.”
         acceleration caused by the COVID-19  fifth, with 10% of respondents   GlobalData’s 2017–20 UK SME
         pandemic complements the high      considering it will be most positively  Insurance Surveys find that SMEs
         penetration of digital payments    impacted. This seems to be long-term  during this period have indicated that
         platforms in India. Against the    thinking, as clearly it has suffered  implications related to Brexit and
         backdrop, insurers are trying to bridge  greatly in 2020 and almost certainly  political and economic stability were
         the coverage gaps in the country by  will do so in 2021 as well given the  their biggest business concern. This of
         collaborating with paytechs that offer  continuation of travel restrictions.  course changed in 2020, when the
         alternative distribution channels at low  However, much like with business  COVID-19 pandemic became their main
         cost and minimal risk.”            interruption, consumers may be more  worry instead. Yet Brexit remained a
                                            inclined to take out comprehensive  major concern to SMEs in 2020, with
         Life and health insurance          travel insurance policies when they  23.8% of all SMEs either very or

         most likely products to see        eventually can travel abroad again.  extremely concerned about the
                                            This would mean the line will see a  resulting economic implications.
         long-term benefits from            strong recovery once the pandemic is  Ms. Chong continues, “The impact of
         COVID-19                           over.                              Brexit has raised questions of whether
         The life and health insurance markets  Carey-Evans continues, “Respondents  cover for goods in transit will apply to
         will see the most positive impact from  were relatively split, with no product  any perishable items affected by the
         the COVID-19 pandemic, according to  receiving over 19% of the vote. This  delays. Such cover is currently only
         a GlobalData poll. The pandemic has  speaks to the uncertainty in the  related to vehicle accidents and covers
         caused major disruption to a myriad of  industry at present. Yet, it also shows  the breakdown of refrigeration
         businesses, resulting in some insurance  that several leading products could see  equipment. Most policies will not cover
         lines seeing huge declines in business,  long-term benefits, despite the  general loss, damage, or expenses
         but some products may also benefit in  disruption within them now.”   caused by delays.”
         the longer term.                                                      Insurers’ reputations could suffer as
         Respondents to GlobalData’s poll   Insurers        risk      their    claims related to damaged goods from
         indicated that life and health products  reputation without goods     border delays are rejected, leaving
         would see the most positive impact.                                   clients unhappy. Considering the current
         Consumers and businesses are likely to  in transit insurance cover    economic struggles related to the
         feel more vulnerable to viruses and at UK-EU border                   pandemic, insurers should use this
         want more protection in the form of  Ever since the UK voted to leave the  opportunity to build trust in the industry.
         such policies.                     European Union in 2016, there has  Ms. Chong concludes, “Creating
         Ben Carey-Evans, Analyst at        been public recognition that border  products that deliver a level of risk
         GlobalData, comments, “Business    delays and implications related to  mitigation for the ongoing border
         interruption insurance is another  border controls will be inevitable once  delays and any resulting financial losses
         product that could positively be   Brexit was formally completed. Against  help insurers attract and retain
         impacted by COVID-19. Businesses   this backdrop, the absence of goods in  customers in the long-term. This is
         around the world would have been   transit insurance cover for perishable  especially true given that consumers
         scarred by forced closures throughout  goods puts the reputation of insurers  are increasingly influenced by a
         2020 and into 2021 were they not able  at risk, says GlobalData, a leading data  company's brand image rather than
         to operate. It is likely that the positive  and analytics company.    targeted advertisements.”

          16  The Insurance Times, April 2021
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