Insurers and brokers yearn to return to face-to-face business post-lockdown, reveals MGAs survey
The insurance industry that is "often seen as change-resistant" has shown impressive transition and flexibility during the UK government mandated COVID-19 lockdown, says Alex Wise, executive director of insurance communications agency Full Circle.
A new survey of MGAA members has found that despite an increasing use of social media and video conferencing services such as Zoom during the COVID-19 lockdown period, four out of five (80 percent of respondents) expected a return to face-to-face client and broker meetings. Only 15 percent said that social media would remain their preferred method of communicating post-lockdown.
The MGAs also revealed that nearly three quarters (73 percent) have taken some form of action to help brokers and policy holders during the pandemic. These ranged from extending renewal dates (43 percent) and offering premium holidays (33 percent), to offering either free cover or free extended cover (28 percent). Other measures taken to help included waiving policy exclusions (15 percent) and cancellation fees (13 percent).
The findings also revealed the financial impact of COVID-19. Just over half (58 percent) said that the pandemic and government lockdown had negatively impacted their business financially. One quarter said their finances had not been negatively affected and the remainder not committing either way.
Furthermore, 38 percent of MGAA members said they were using social media, specifically LinkedIn and Twitter, more during lockdown, and 43 percent said their use was unchanged. Despite the increasing use of social media, it still ranked behind video conferencing, telephone and email as the preferred method of communicating.
Wise said: “The UK Government lockdown has called for significant changes in the way both the insurance industry operates and how it communicates. For an industry that is often seen as change-resistant, the transition and flexibility it has shown is all the more impressive. And yet, as the survey shows, there is clearly a hankering for a return to the traditional face-to-face way of doing business.”
“Whilst no one doubts the importance of relationships and networks in the insurance market, turning our backs on what necessity has shown can be done, would be a mistake.”
He added: “Given the negative headlines circling insurers recently, it’s perhaps a little surprising to find so many have actively being trying to help brokers and their clients. More needs to and can be done to help balance this equation and with it, the reputation of the industry.”
