INSURANCE INDUSTRY POST-PANDEMIC COVID-19

Abstract

The humanitarian tragedy caused by the COVID-19 pandemic has had profound and far-reaching effects on nearly every aspect of life and business. This unprecedented crisis has not only exposed vulnerabilities in healthcare systems and economies but has also accelerated changes that were already underway. The insurance industry has also undergone major changes in recent years as a result of the pandemic. During the pandemic, the health insurance class, for example, was key to human health because it provided free medical checkups for those who had COVID-19 symptoms. The pandemic highlighted the critical importance of health insurance, drove innovations in telehealth, and exposed gaps in coverage and access Also, necessary to take into account when analyzing the insurance industry is the development of artificial intelligence and its role and impact on digital transformation. The benefits of artificial intelligence must be taken into account and a way must be found for their appropriate use in insurance, but also to prevent the abuse of the use of artificial intelligence. The pandemic accelerated the digital transformation of the insurance industry. Companies had to quickly adapt to remote work and digital customer service. This shift has led to increased investment in technology and digital tools; growth of insurance technology companies offering innovative solutions and enhanced customer experience through digital channels. The role of the insurance intermediaries that intermediate in the sale of insurance products also changed. The COVID-19 pandemic has significantly influenced the bancassurance model, where banks and insurance companies collaborate to offer insurance products through the bank's distribution channels. The pandemic accelerated digital transformation, reshaped consumer behavior, and highlighted the need for more integrated financial services. However, insurance markets are not developed on the same level in every country. Especially if a comparison is made between developed countries and developing countries, it can be noted that developing countries are significantly behind in terms of gross written policy premiums. Although access to financial services such as savings and credit has increased across the developing world, the use of insurance services for financial protection against these risks has remained low. This paper aims to determine the direction in which the insurance industry will move in the future and what should be undertaken by developing countries, such as the Republic of North Macedonia, where insurance is not at the same level of development as in developed countries, that is, how to more successfully and comprehensively face the challenges in the insurance industry brought by the new era.