5 Ways Workforce Can Reshape Africa’s Insurance Sector Post COVID 19

Africa’s insurance industry, although just stepped out of its nascent phase, has responded well to disruptions over the last decade. That being said, COVID 19 is proving to be a threat of magnanimous proportions to say the least for the world. Africa is no exception in this situation. Having evolved into a pandemic, the unprecedented crisis has disrupted not just the cycle of human existence but also economic activity on a global scale, thus raising widespread concern and causing alarm.

On its part, while Africa’s insurance sector has been successful in absorbing several ground-breaking impacts, how it addresses the COVID 19 crisis is something that remains to be seen. Usually the financial sector is prepared for contingencies like natural calamities, cyber threats, wars and so on, but none of these scenarios are as unpredictable as that created by this highly contagious micro-organism. Now, with most variables being unknown, indefinite travel restrictions and locked-down societies the world over, Africa’s insurance sector needs more than ever to re-invent itself.

In such a situation, there is but one silver lightening in the proverbial black cloud, namely the workforce. Under the circumstances, if any factor can make a significant impact, it is the employees, who define the human aspect of the insurance sector not just in Africa but all over the world.

So, what foreseeable impact can the workforce have on the insurance sector post-COVID 19? Discussed as follows are some ways by which this factor can reshape the insurance sector in Africa –

Tapping Market Opportunities in an Uncertain Economic Environment

Undoubtedly the economic environment has never been as uncertain as it currently is, when the pandemic is drifting undeterred across political boundaries. Given the current situation, it is but expected that most countries — in Africa and beyond — are likely to revise their GDP figures with negative connotations. So unprecedented and profound is the nature of the crisis that economic growth is expected to sink to the rock-bottomover the coming months.

One of the ways by which Africa’s insurance sector can counter the situation entails identifying market opportunities in this uncertain economic environment. Post-COVID 19, the insurance playing field on both local as also global horizons will be leveled out as never before. A trained workforce armed with the requisite skill-set and expertise will then be well-poised to expand the customer base and tap into hitherto untouched sectors.

During the calm that will follow after the storm, market opportunities in the insurance sector would be bountiful. Then, all it would take is a well-equipped workforce to tap the potential and leverage the situation in its favor.

Handling Changing Insurance Customers

Despite the density of population being low as of now, analysts expect Africa’s population to grow exponentially over the coming decades. As per predictions, the continent will not only rank second in terms of density of population — first being Asia — but will also have improved in terms of life expectancy. Another factor which spells plenty of hope for Africa is its young population, which is likely to sustain well into the future.

For the insurance sector, these demographics have several positive implications. It is likely that Africa would be home to a sizeable workforce boasting of a high literacy rate, income level hovering around the middle-class mark, and enhanced mobile connectivity. Due to the fast development that the continent is experiencing, a surge in the spending capacity of people is all but round the corner. 21st century Africans will also have gathered sufficient assets which would need insurance covers.

Given this scenario, the onus is on the workforce making up Africa’s insurance sector to devise products and services that appeal to this changing customer base. It could mean maintaining a strong digital presence, so that much of the interaction with the customer would take place in the virtual world. Safeguarding against cyber threats, the insurance sector can generate confidence among its users, thus providing services without entailing close physical contact in a world ravaged by COVID 19.

New Approach to Insurance Distribution

How insurance products and services will be distributed in the post-COVID 19 era will largely depend on the ability of the workforce to educate the customers and understand their requirements. Since much of the dissemination would be through the digital media, the workforce constituting Africa’s insurance sector should be prepared to deal directly with the clientele. Not only will the customer base keep in touch with the insurance providers but also discuss about their unique situations and explore the possibility of acquiring services which would be tailor-made or relevant.

Insurance distribution in the aftermath of the health crisis would also call for creation of innovative models, like comparison charts and surveys. The workforce could then guide the customer as regards usage of these tools and enable them to select a product/service without involving a broker or an intermediary.

Data Analytics and Technology

While several technological changes have revolutionized the way people operate and communicate, only a few have been as disruptive as data analytics. Massive volumes of customer-specific information form data and this acts as the foundation on which the insurance sector providers can base their future plans. By organizing the inputs received via data into various categories, insurance providers can identify trends, behaviours and preferences. Accordingly, they can design products that are more relevant to the existing scenario.

For example, because COVID 19 does not have a vaccine yet, an attractive insurance plan under the circumstances would be one that compensates the victim’s medical expenses. Likewise, a financial plan for the immediate family of the infected person will also be appreciated by potential customers.

That being said, data by itself is of no use unless the workforce acts upon the indications. So, depending on the information gathered, the workforce can make a difference by cultivating new relationships, improving old relationships, manage risks and provide customized solutions.

Capitalizing on Regulatory Changes

If the COVID 19 is treated as milestone, then it is but logical that regulations governing Africa’s insurance sector in the aftermath of the pandemic would differ from what was regarded as the norm earlier. Because the manner and methods of providing services and products is likely to change, the regulations will also need to be tweaked as per the situation prevailing at the time.

As far as the workforce in Africa’s insurance sector is concerned, survival would depend on how well the employees are able to adapt to the regulatory changes. While the first step in this direction would entail grasping the changes, the forthcoming steps would concern applying them in a way that revenue is accrued without compromising on the quality of the product/service.

An important aspect in this regard is that regulatory changes may vary from one country to another within the continent. The workforce can best tackle this variation by cultivating market awareness and keeping abreast of the latest developments. Coordination and collaboration between various providers would also go a long way in negating the regulatory differences between countries.

Final Thoughts

Ultimately, the foreseeable impact of workforce on Africa’s insurance sector can be both tangible as also perceptive. Its tangibility would be felt through increase in revenue despite restrictions and regulations that would define the post-COVID 19 world. Perception would entail being intuitive about the changing customer needs, trends that take shape, and offering solutions that are relevant.

To be able to make the impact, the workforce in Africa’s insurance sector would need to adapt to new scenarios and a different work culture. Employees must be tech-savvy in order to handle the digital interaction and must also be well-versed with the various tools to be able to guide potential customers. They must also be prepared to deal directly with customers owing to the elimination of several intermediary layers.

Therefore, through its impact, workforce in Africa’s insurance sector can offer products and services that are cost effective, convenient as also customized. The post-COVID 19 scenario is likely to pose challenges to the growth and the bottom line of the insurance sector in Africa. However, none of these would hinder the long-term growth of the sector. It is just a matter of applying creative thinking to overcome these problems.

Overall, the foreseeable impact of workforce on Africa’s insurance sector is likely to be positive and progressive.