COVID has impacted our lives in sundry ways; some have lost people, some have lost jobs and some are trying to maneuver their way around this resilient post-pandemic life. Post COVID life in the work industry, however, has been greatly altered to withstand the test of the pandemic. A few trends have been pushed forward during COVID-19, after barely surviving pre-pandemic. While other trends and ways of work had to cease and make way for the continuation of life post-pandemic. Generally speaking, there have been prominent shifts and trends ever since; this blog will focus on the workplace of the future, digitalization and the insurance industry.
The Workplace of the Future
As it has been previously mentioned, COVID has resulted in countless changes across the globe; one of which is where people work. Due to the fast transmission rate of the pandemic and to prevent further spreading, people were forced to adjust by figuring out new ways to work, while being safe. As a result, a new hybrid was internationally developed in order to guarantee just that. Here are some of the most common characteristics:
Work from home (WFH) setup
This is a sort of an adaptation to keep business going. The labor market had, initially, been massively affected with the unemployment rate rising by 850,000 in June in the US alone, according to the US department of labor. However, this setup made it possible to hire people in order to perform their jobs safely. One of its challenges, at the beginning though, was the fact that not everyone had been prepared with office-based and work-ready homes. Now, people have been able to create work environments from their homes, which might help in the future as an alternative way to produce work. Yet, the most important thing needed here is a fast, steady internet connection and your virtual office is ready.
Amplified flexibility with reduced office costs
Due to the pandemic and its resulting lockdown, companies were forced to see which jobs can be performed from employees’ homes and which ones necessitated an office. As a result, they discovered what people truly need to have a working environment from their homes. Either way, this highlighted a more flexible working environment that actually cost companies less. Additionally, this gathered information and insights might end up being helpful for future reference.
E-learning courses and virtual classes
Employees opted for e-learning courses to guarantee that their development is not halted by the current conditions. This was an option available pre-COVID; however, many people preferred real life seminars and courses. Now, though, employees are learning and growing professionally with this option that is rapidly gaining popularity. It is even suggested that it will not be a temporary way during the pandemic and that it will still be a valid, strong alternative post-pandemic. As it keeps getting more technologically advanced and refined with time.
Redefining the workplace with an emphasis on employee engagement and team connection
Due to the current circumstances, managers have had to test out new ways to keep people engaged and motivated during lockdown. As a result, managers have chosen virtual activities that have proven beneficial to increase engagement between employees; as it is one of the key pillars to any company’s success. Consequently, working in isolation within offices, which was predominant pre-pandemic, will probably change for an environment full of originality, unity and innovation. As a result, it is predicted that social interactions and activities between employees will continue, after people return to working from offices; now that their importance has been proven.
Digitalization
Due to the excessive limitations on gatherings and operations not being done in-person, a shift has been made to do everything through the internet. As a result, digitalization has been pushed forward immensely and rapidly. Everything from office meetings and conferences to the workplace dynamics have been changed for their virtual parallels. Even the work itself has been significantly changed in order for companies to adapt. Subsequently, automation and digitalized solutions have been in the front line as means of serving clients. This was done to keep both clients and employees safe. This digitalized transformation has seen essential changes; yet, it is commonly distinguished by:
“Spring-cleaning” and immense investment in technology and cybersecurity
Pre-pandemic, most businesses did not prioritize nor invest in technology, which is why digitalization was not big then. Now, with the pandemic happening, a research done by Mckinsey shows that companies are now able to implement digital changes 20-25 faster than the predicted estimate; doing what would have approximately taken a year of work in 11 days to be exact. Another aftermath of this dependency on digitalized technology is the fact that nowadays people invest based on what is needed to successfully run a digital-based business. As such, that drove people to scrutinize in examining their software and capabilities to fill in the gaps of redundancies in costs and services. This, in return, created a seamless, effective operation.
Before COVID-19 and according to IBM’s Cost of a Data Breach Report, it took an average of 9 months to control a breach in cybersecurity, costing the company great losses in time and money. Now employers tend to educate their employees in order to be better prepared and protected.
Employee and customer satisfaction and the use of automation
Low employee satisfaction could result in high turnover. In order to minimize costs that accompany hiring new employees, companies resort to creating a digital employee experience that is both positive and beneficial. Moreover, companies should prioritize and pay attention to creating an easy, problem-free digital customer engagement tool. A good way to minimize the number of people needed to perform a task is through automation. This can, also, be done to get employees focused on their core tasks. Another great way to create a great experience for customers is to know and understand what your customers want and deliver it through technology and your overall organization
The Insurance Industry
The market and global commerce were deeply affected by the pandemic. According to IRMI and Capital IQ, the insurance industry was the sector that declined the most in 2020. It is calculated that it trailed behind the S&P 500 market index by 20.8%. Hence, the insurance industry, as a whole, was dramatically and negatively affected in the first half of 2020. Luckily, however, the insurance market slowly rebounded in the second half of 2020.
Profit decline in certain types of insurance markets in the first half of 2020 followed by a persistent recovery
In 2020, the heightened uncertainty of individuals’ financial stability and the amplified rate of unemployment caused a 13.4% decline in life and health insurance in the US alone. Many small businesses had to close, due to the pandemic, resulting in a further decline in commercial insurance. However, automobile insurance had mixed results, after the first wake of the pandemic. On one hand, premiums were reduced, due to a decrease in driving habits and demands for policies. On the other hand though, insurers’ profitability were heightened as a result of accidents occurring less.
As for international multiline insurers like Allianz and AXA, a decrease was calculated in their profitability in comparison to the profits gained in 2019. However, the largest decrease was that of US-based multiline insurers with a total decrease of 22.1%, according to IRMI. One of the greatest declines by far, though, is suffered by international reinsurers with a 21.3% decrease in 2020.
When it comes to transactions, according to Mayer Brown, they were cut in half in the first half of 2020. The second half, though, recompensed the loss to end the year at a greater volume in comparison to 2019. Furthermore, Allstate’s market share in personal property was increased, after a $4 billion purchase of National General Holdings. To focus on the personal property and liability market though, the company sold its share in life insurance for $2.8 billion to Blackstone.
Insurance brokers’ increased revenue in 2020
According to IRMI, brokerages are the only sector of insurance to report an increase. Marsh and McLennan, for example, recorded a 9% increase. AON plc, as well, had a total of 4% increase. The company, also, had an increase in home insurance by 0.8% in comparison to 2019 with a noteworthy 67.9% increase in the second half of 2020 only. It is notable that brokerages benefitted from the lack of risk exposure and used it to their advantage, after the initial decline that affected all sectors in the insurance industry in the first quarter of 2020.
Who is FLINK?
FLINK Solutions is an Insurance back office company based in Egypt.
What can FLINK offer?
Flink as a BPO company offers different services
Due to the company’s geographic location, you will get the work done outside office hours you will get the 24/7 availability that you need. Your employees, during their shifts, will then have the time to focus more on improvement and enhancement, with FLINK taking care of the rest. This way, you get a 24 hour service.