Insurers may experience 'dramatic increase' in claims due to COVID-19

Insurers globally are expected to face a "dramatic increase" in their claims activity as a result of the coronavirus (COVID-19) pandemic, according to the Chartered Insurance Institute (CII) group.

The Society of Claims Professionals, which is part of the CII, has outlined several actions that can help prepare insurers to handle a sudden surge in their claims activity.

According to the society, using predictive data, managing staff levels, identifying at-risk customers and getting in their mindset, providing accessible and consistent information, and following-up with a post-surge service will help insurers adequately prepared for surge events and maintain their services in these uncertain circumstances.

Additionally, it noted that it is important to have a contingency plan in place in case there are employee absences, or other factors preventing staff from handling claims, during an emergency.

Jeremy Trott, non-executive director of the Society of Claims Professionals, said: “The sudden outbreak of the coronavirus pandemic took a lot of us by surprise, but it has served as a reminder to the insurance profession that we need to be adequately prepared for the unexpected.

“It is during times of public concern that the role of the insurance profession becomes the most important to the public. It is vitally important that insurers remain in a constant state of preparedness for a surge event so that our clients can be helped as quickly and effectively as possible.”