Impact of the coronavirus pandemic on insurance dedicated to business travel and expatriates

The pandemic of coronavirus disrupted the industry insurance in terms of professional mobility. Expatriates and business travelers have seen their needs evolve, requiring rapid and efficient adaptations to existing insurance products. This change has prompted insurers to review their policies to meet borderless requirements, such as covering illness, death and work disability on a global scale. Digitization and risk optimization have become essential priorities. This article explores these new challenges and the solutions put in place to overcome them, while highlighting the growing expectations of companies in terms of security and flexibility for their international employees.

Insurance Transformation for Business Travel

COVID-19 has dramatically changed business travel, leading to a more than 60% drop in international assignments. With the reopening of borders in November, businesses are now looking for insurance adapted to the new professional landscape. Industry players, such as AON, are seeing increased demand for global coverage policies that take into account illness and accident risks. A striking example concerns a company with employees in France and Asia, requiring consistent guarantees regardless of their location. This phenomenon also calls for a review of the ISO 31030 standards, which govern the Travel Risk Management.

The challenges of international mobility during COVID-19

With the drastic reduction in travel, companies must deal with the increased complexity of managing remote employees. New issues are emerging regarding the location of employees working internationally. For example, an employee who can work remotely but chooses to temporarily settle in another country asks questions about the applicable social and tax legislation. These issues require rapid adjustments to prevent employees from falling through the cracks, particularly when it comes to health coverage.

The crucial role of insurers in crisis management

Insurers are at the heart of managing the crises caused by the pandemic. Their interventions manifest themselves in creating resilience among policyholders as well as supporting economic recovery. According to an article from theAtlas Mag, these measures made it possible to avoid substantial losses estimated at 76 million USD on the market. To do this, insurers like EY encourage rapid adaptation to the changing needs of the sector, emphasizing the importance of continuous dialogue with client companies to better understand their specific issues.

Adaptation of health insurance coverage

The emergence of new risks requires an update of health insurance policies. This process involves incorporating specific criteria that take into account employees’ temporary residence and local health services. An example of success in this area is the adaptation of offers, as mentioned by AXA, in favor of robust health coverage to meet the expectations of multinational companies. This proactive approach has allowed insurers to remain competitive despite the global health crisis.

The accelerated digitalization of the insurance sector

The pandemic has catalyzed the digital transformation of the sector insurance. In response to the restrictions imposed by the health crisis, insurance companies have had to accelerate their digitalization initiatives to maintain contact with their customers. This digital evolution allows for more agile policy management and a reduction in request processing times. A report of Selectra underlines that digitalization is no longer an option, but a strategic necessity to effectively meet the mobility requirements of their customers in a post-pandemic world.

The impact of digital technologies on insurance

Digital platforms enable frictionless interaction between insurers and their customers, breaking down physical and cultural boundaries. These technologies improve insurers’ ability to analyze data and provide personalized solutions. For example, InsurTech startups have emerged, offering tools that optimize risk measurement and facilitate remote underwriting. This ever-changing environment encourages innovation and pushes insurers to quickly adopt these new technologies to stay relevant in the post-COVID landscape.

Source: www.aon.com