1. Agile and faster product developmentIndia’s insurance regulator IRDA has already moved to revise insurers’ product portfolio. They have advised insurance companies to design products that cover treatment costs for COVID-19 patients.
2. Reimagine risk modelsDespite the history of worldwide health crises like H1N1 and SARS, there is very little evidence of insurtech companies building solutions to model the risk of pandemics. One of the biggest reasons for this is the lack of enough historical data to build credible loss curves for events like COVID-19. Sophisticated approaches leverage stochastic models that are based in epidemiological science. These models are built from the ground up using a wide range of inputs - a disease’s transmissibility, lethality, point of origin and status of a vaccine in production. However, there is no widely accepted risk model available in the market.
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