Coll mon ie las 2020. Pdf

party services. Insurers subcontractors, who have so far taken some 
responsibility for efficient, trouble-free and professional support of the 
insurance business, may themselves experience difficulties due to the 
Covid-19. 
Acceleration of digital transformation
in the insurance industry. 
Technologies such as artificial intelligence (AI), machine learning (ML), 
Internet of Things (IoT), natural language processing (NLP) and 
computer vision will undoubtedly lead to automation and increase in 
efficiency of many business processes in insurance companies. The 
distribution of insurance, underwriting and claims adjusting are key 

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areas in which digital transformation is already taking place (
How 
European insur
2020). 
Adverse macroeconomic conditions
will negatively affect the 
value of assets and profits of insurance companies. Low interest rates 
will reduce the investment income of insurance companies, which is 
particularly important in long-term life insurance. One should also 
expect an increase in credit risk, insolvency or temporary liquidity 
disturbances among insurance debtors. 
3.4. Social and customer relations 
Due to the epidemic situation, the quality of customer service and the 
approach based on CSR principles have become even more important. 
This trend includes the increase in the importance of market 
communication, the company s assessment based on its response to a 
pandemic, sensitivity to security issues, increased risk of damage to 
reputation (
Covid-
2020). We identify the following major issues in 
this area: 
Insurers should apply thoughtful approach
to their clients 
during the pandemic as it may become a new factor of competitive 
advantage in the post-Covid-19 era. It encompasses extension of 
insurance premium payment deadlines, gentle approach to the 
interpretation of insurance conditions regarding epidemic exemptions, 
and striving for amicable settlement of disputes with stakeholders. 
Corporate social responsibility
. In face of the difficulties of 
national healthcare systems in providing all patients with due care, the 
insurance industry has actively engaged in material and financial 
assistance to hospitals. Activities such as providing latex gloves, masks 
and other items of medical clothing, founding Covid-19 tests, purchase 
of respirators, educational and information campaigns, consultations 
with psychologists they all show the engagement of insurance industry 
in corporate social responsibility (CSR). 
It is noteworthy that a global threat, such as the Covid-19 pandemic, 
can benefit the entire insurance industry. It strengthens public awareness 
on the role insurance coverage can play in minimizing the negative 
effects of random events. It seems that this fundamental truth has not 
always been noticed. There is therefore a real chance that the post-crisis 
increase in risk aversion will become a stimulus for insurance demand. 

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236 
3.5. Insurance supervision and regulation 
Supervisory authorities are observing the insurance market during 
the pandemic. They try to monitor the situation on an ongoing basis, 
relying mainly on regularly collected data from insurance companies. 
The EIOPA in the statement of 17 March 2020 expressed the belief that 
the European insurance sector is able to withstand a serious market 
shock thanks to adequate capital resources (
EIOPA state
2020). 
The major identified challenges are: 
Additional o
r more detailed reporting obligations in the insurance 
industry should be expected, particularly on: asset adequacy, stress-
testing based on the pandemic, analysis of the impact of a pandemic on 
solvency, monitoring and regular reporting of financial risk, disclosure 
of information about the impact of the virus on operating activities 
(
Covid-
2020). 
Delay in legislation
might be expected, including as crucial task 
as the Solvency II revision, the EU Sustainable Financing Strategy, 
revision of the NFRD directive on non-financial reporting, revision of 
the IDD Directive, pan-European individual pension product (PEPP). 
Call for delay to compliance dates.
European insurers signal 
that as a result of perturbation in their day-to-day operation and 
uncertainty in the entire economy, they have not been able to prepare to 
achieve full compliance with the initial margin requirements for non-
centrally cleared derivatives (
Covid-
2020). 
Public-private partnership for pandemic risk.
In the long term, 
OECD suggests considering a public-private partnership between the 
insurance industry and public authorities to support insurability of 
pandemic risk, especially if this risk is likely to grow (
Initial 
2020). 
Conclusions 
It was shown that the negative effects of the pandemic for the 
insurance industry is severe and can be seen from many perspectives. 
Nevertheless, in the long-run one can expect an increase in social risk 
perception and greater awareness of the role of insurance in mitigating 
the negative effects of random accidents. It would be a relatively 
optimistic scenario. 

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237 
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