With India becoming one of the worst-hit countries in the COVID-19 pandemic, the insurance sector has also been impacted as reduced consumption and workforce productivity as well as a heavy financial impact are emerging as some of the major concerns for the insurance industry, according to a survey conducted by PwC.
In a study titled ‘COVID-19 Impact on the Indian Insurance industry,’ PwC said, “The two productive months for the insurance industry — March for life insurance and April for non-life corporate renewals — have both seen a significant hit and the difficulty continues in the month of May in mobilising the distribution channels.” The report said the immediate focus needs to be on the business continuity plan, employee safety and well-being and stakeholder communication, among others.
Value of insurance
“In an under-penetrated country like India, the value of insurance has always been deprioritised by the consumer. For the insurance companies, the next few months will be difficult in returning to the high-speed market growth highways they have been used to for long,” Joydeep Roy, leader, insurance, PwC India and global leader, insurance digital assets said.
“They have to be careful in reducing costs as that may dampen their growth engines for the future, and innovation will be the order of the day,” he added.
