Increased connectivity and greater use of technology will be the legacy of the pandemic, according to the CEO of some of the world's largest insurance companies.
CEO attends S&P Global Ratings Inc.'s 37th Annual Insurance Conference, held online, also said that commercial insurance price increases are still left to compensate for a longer period of soft pricing.
"Think of things like leveraging virtual technology across the entire staff base, the digital knowledge sharing platforms we have all become accustomed to using," said Dino Robusto, Chairman and CEO of CNA Financial Corp.
"All of this has been accelerated. Virtual Claims Adjustments and Risk Control Inspections ̵
“ We did not do a lot of WebExes as an industry or use connectivity in this way, ”relying primarily on face-to-face encounters, says Peter Zaffino, President and CEO of American International Group Inc. "We learned to drive the business forward in a very productive way", which accelerated digital transformation.
John Neal, President of Lloyd & # 39; s London, said, "If we did not have the digital capability we need to communicate, shop and operate, we would have failed" during the pandemic.
The CEOs said that the commercial insurance prices a likely to continue, compensating for years of soft
"We are coming out of the softest pricing cycle we have ever seen," Neal said. "Before we saw prices start moving about three years ago, we had almost a decade of challenging prices." Insurers working in a near 0% interest rate environment must "price products to make a return on the equations insurance side."
"Many industries are experiencing interest rates because they need it," Mr Zaffino said.
Mr Robusto said that before the market hardened there were more than 20 quarters where price increases were lower than loss-making trends, and that it has only There have been some "meaningful" price increases over the last 18 to 24 months – low double-digit percentages – for mid-market accounts. "So, what you have here is a lot of land that still needs to be settled."
Mr Zaffino said that the public offering of 19.9% of AIG's life and pension business was the result of a review which showed that synergies were not as strong as once thought, and that investors preferred the pure the game in a life and pension company or a real estate / accident event to invest in a combination of both.