Many experts are warning policyholders that some insurance could become unaffordable in the future, especially as the COVID-19 pandemic continues to impact the economy and various markets, resulting in job losses and financial struggles.
International Underwriting Agencies (IUA) senior underwriter Lilian Marais (pictured) shared with Insurance Business how these warnings might already be a reality for some policyholders impacted by the pandemic.
Marais, who liaises with brokers, coaches staff, and looks after her portfolio in her position as a senior underwriter, said some policyholders were already struggling with paying their premiums pre-COVID-19 – and the pandemic has only made their financial issues worse.
She warned that the challenges that insurers and policyholders faced last year might remain in the future.
“One of the major challenges I foresee is that insurance may become, if it isn’t already, unaffordable for some customers. Clients that are struggling financially are likely to cancel their covers, which may help in the short term but will be a regrettable decision in the long term. I also believe that cyber and crime claims will increase,” she said.
Marais said she hopes to see fair pricing across all suppliers and genuine competition based on integrity.
“Being alert to risk and clients’ budgets will be essential, as will be the need for heightened awareness relating to technology breaches,” she continued.
Policyholders aren’t the only ones struggling amid the COVID-19 crisis. With the pandemic still impacting the insurance sector, it’s not surprising that insurance professionals also took a hit. Marais was also impacted by the crisis as she remained busy even after the lockdown.
“I think my role and workload has doubled,” she said. “We pride ourselves on being nimble and responsive, and I think our brokers appreciate that, which is why they like dealing with us. Although I loved working from home, I sometimes missed the energy of the being part of the team in the office.”
Despite the challenges that resulted from COVID-19, Marais shared that she still loves her job. She encourages others to enter the industry as “it is very stimulating and challenging, offering a tremendous personal reward.”
“The insurance industry has the ‘best work stories’, in my opinion. I love my job and the people I work with,” she said.
“Insurance is a complicated, multi-faceted industry – you can fulfil any ambitions purely by staying in the industry – from claims management all the way through to IT genius. The more you put in, the more you get out. I would also encourage the younger folk to do the insurance exams and spend time in the ‘scary’ areas, such as claims, which is an essential part of growth and knowledge.”
