The (re)insurance industry is navigating one of the most significant periods of change in recent times which is altering perceptions of risk across the sector. The impact of COVID-19 has put pressure on a marketplace already addressing challenges on multiple fronts. During this period of transformational change, reinsurance continues to be a highly effective tool to enable insurers to respond.
For the first months of the lockdown, most companies focused on taking the pulse of the organization, grasping the health crisis, making sense of government programs and putting in place infrastructure and processes to work from home, according to Marsh & McLennan Advantage Directors Clair C. Olson and Jack Campbell. Very little thinking went into the question: What will our organization look like going forward?
As the pandemic continues, a massive restructuring of the economy is already underway. Companies in many sectors are starting from a zero basis of activity, which is daunting, but this gives them license to reinvent their organizations in ways not previously available to them except in their imaginations. It’s an opportunity, but perhaps also a necessity for survival: companies must rethink every aspect of the previous business-as-usual, from finance to operations to products to people.