2021, a transitional year for insurers

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Resilient, with prudential ratios in line with regulatory standards, the industry has no doubts about its financial strength. At the beginning of 2021, the profession's concerns focus on the ability of policyholders, individuals and businesses alike, to meet their premium payment obligations

In addition to this potential customer default, there is a risk of business failures, increased job insecurity, worsening catastrophe losses and persistently low interest rates.

In spite of this bleak socio-economic environment, the year 2021 is looking better than its predecessor. The arrival of the first Covid-19 vaccines at the end of December 2020 and the beginning of January 2021 foreshadows a future end to the crisis.

The current year is therefore a year of transition punctuated by government "stop and go" policies, with decision-makers setting their sight not on growth but rather on the effort to put an end to the pandemic while safeguarding the economic fabric. In this context, a sustainable recovery of all activities should not be on the agenda prior to 2022.

During this pivotal period of 2021, the performance of insurance companies will remain well below those reported in the years prior to 2020.

After the shock wave triggered by the coronavirus, the insurance sector is required to speed up its transformation. It must learn to live, resist and manage mega losses such as global cyber-attacks, large-scale climate catastrophes and, of course, other viruses.

Atlas Magazine N°178, February 2021 [1]