In a new report developed by Lloyd’s and the UK Advisory Committees, the firm provides three “important” recommendations that the insurance industry should implement to respond to the challenges that Covid-19 has presented.
The company is now recommending a “leverage and build” on the application of existing leading practice including a linguistics review of customer documentation.
It is also asking for insurers to invest in continuous product design and delivery innovations, including data-led policies and digital contracts, as well as exploring more “radical” options like parametric or outcome-based insurance.
In addition, it is requesting for companies to “involve customers directly” in product design to build simpler, more relevant products for their changing needs and post-pandemic risk profiles.
It also revealed it is also taking its own action by reviewing how products are developed, designed and distributed as well as reaching out to trading partners, risk managers and customers, so it can implement changes across its global marketplace to improve customer outcomes and meet their needs.
John Neal, Lloyd’s CEO, said: “As many businesses around the world evolve to withstand the continued impacts of the COVID-19 pandemic, including radically changing their business models, the insurance industry must urgently reassess how it can better serve and support its customers.
“While the societal and economic impacts of the pandemic are of a scale that has never before been experienced, it has reinforced the global industry to accelerate its efforts to build simpler insurance products that are more easily understood by its customers.”