The Blockbuster vs. Netflix competition is instructive for the predicament COVID-19 (coronavirus) has posed to insurers.

Streaming technology was available back in 2006, but Blockbuster didn’t take advantage of it. Of course, hindsight is 20/20 and it’s difficult to immediately digest fast-moving technology changes in real-time. But Netflix did understand that DVDs were not here to stay, and they charted a digital course. By adapting early and transforming, they guaranteed themselves a bright future.

 

2020 has illustrated that no one has a crystal ball, but it’s best to remain agile and prepared for any eventuality.

Insurers are no strangers to natural disasters and other large, disruptive events. But how many were truly prepared for their own workforces and businesses to be disrupted by the coronavirus pandemic?

The world may be in a crisis, but your customers don’t care. Maintaining and strengthening customer satisfaction – a 24/7 endeavor – is important. That can only happen if your infrastructure can maintain that pace with zero down-time, deploy changes daily and roll-back quickly.

In an environment of economic uncertainty, it’s always tempting to cut costs to support other business needs. In today’s digital and socially distanced world, cutting IT costs is not a chance insurers can take.

One thing that sticks around no matter what, is cybercrime. According to Forbes, in early April Interpol “detected a significant increase in the number of attempted ransomware attacks against key organizations and infrastructure engaged in the virus response.” Google announced in April that “Scammers are sending 18 million hoax emails about COVID-19 to Gmail users every day.”

Statistics like that can be overwhelming and frightening. Insurance carriers are at a pivotal moment. Where and how should you pivot?

Like a good Netflix series, I’ll try to end on a cliffhanger…read my next blog for the where and how.

Here’s a hint: Insurers would be wise to ask themselves if their IT is ready to offer support during the next global disaster. Can your systems be operated and maintained remotely? Are they in diverse geographic locations? Managed services and cloud computing will be key…