The impact of COVID-19 on the overall insurance industry in relation to having a business continuity plan

Abstract

The basis of this study is to provide the reader with a better understanding on the effects of COVID-19 within the insurance industry in relation to having a Business Continuity Plan. This subject was deemed to be of great significance given the events that occurred in the past 2 years, where countless companies and individuals suffered from the devastating impact that arose due to the COVID-19 pandemic. Furthermore, this subject is still relevant today, as although the chaos of the pandemic has calmed down, people and companies are still wary of its effects and its losses. This study aims to tackle and analyse all of these effects together with the role of the Business Continuity Plan in mitigating the impact and damages sustained. The stages of the plan are discussed in detail as part of the secondary data, whilst the key elements and factors are also listed as part of the primary data collected. This results in valuable feedback, as the author gets to better understand the role that such a plan plays in these events. Moreover, the approach is on a risk management basis, as the risks brought about by COVID-19 in relation to the insurance industry are mentioned. Further to the above, the study also aims to establish the current customer service levels on the Maltese islands, whilst identifying the client's opinions and feelings on the customer service provided. This is then further analysed and compared with other questions, particularly those relating to the dissatisfaction levels during the insurance process, and to see what caused such dissatisfaction. The risks that arise due to the clients being dissatisfied are also tackled as to see what impact this has on the future of an insurance company. Such criticism and analysis allows one to rethink and amend some processes with the aim of avoiding similar situations in the future. All of the above was achieved through research on already published works, such as articles and books, together with the development of a questionnaire. Through the questionnaire, 385 authentic replies were gathered and analysed. The sampling technique used was that of non-probability sampling, due to the way of how the questionnaire was shared with the public. All of this research and collection of data allowed the author to further develop the study and achieve all the aims and objectives mentioned. Following the conclusion of the analysis from the collected data, both primary and secondary, it was deemed imperative that a Business Continuity Plan is prioritised, and insurers shift their focus on pleasing clients more, in a way that increases their loyalty towards the company.