Page 16 - Insurance Times April 2021

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