With India increasingly reporting cases of Covid-19 pandemic, the insurance sector is also witnessing the impact of the deadly virus with the fall in consumption and workforce productivity as well as heavy financial concerns, according to a survey conducted by PwC.
In a study named ‘COVID-19 Impact on the Indian Insurance industry,’ PwC stated, “The two productive months for the insurance industry — March for life insurance and April for non-life corporate renewals — have both seen a significant hit and the difficulty continues in the month of May in mobilising the distribution channels.”
The report mentioned that the immediate focus should be on the business continuity plan, employee safety and well-being and stakeholder communication, among others.
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“In an under-penetrated country like India, the value of insurance has always been deprioritised by the consumer. For the insurance companies, the next few months will be difficult in returning to the high-speed market growth highways they have been used to for long,” Joydeep Roy, leader, insurance, PwC India and global leader, insurance digital assets said.
“They have to be careful in reducing costs as that may dampen their growth engines for the future, and innovation will be the order of the day,” he added.