Longer-term implications of COVID-19: paradigm shifts

The COVID-19 experience will likely accelerate paradigm shifts already in the making before the crisis started: a larger role of government, accelerated digital transformation and de-risking of global supply chains. Higher inflation risk coupled with financial repression present challenges to re/insurers. At the same time, there will be great opportunities from evolving supply chains.

Key takeaways

  • We expect COVID-19 to accelerate paradigm shifts that were already in the making.
  • Such changes include a larger role of government, accelerated digital transformation and a restructuring of supply chains.
  • Taken together, this could lead to a stagflationary and/or financial repression environment over the next two to three years, both very challenging for re/insurers.
  • Evolving supply chains and accelerated digitalisation will create new re/insurance opportunities.

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Economic Insights Longer-term implications of COVID-19: paradigm shifts

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