Protecting people a key concern as companies come out of pandemic

Companies that failed to prepare for the unknown a few years ago have now discovered they must reprioritize risk, broaden their perspective and evaluate major shocks, not just anticipated losses, according to a new Aon study.  

The report says that before the pandemic hit, Aon discovered that risk readiness had declined rapidly, reaching an all-time 12-year low. An economic slowdown, business interruption, rapidly changing market forces and failure to innovate were among the top 10 risks companies feared, but a pandemic or health crisis was at the bottom of the list.  

Workforce agility is a priority 

Protecting people and assets are a top concern, with many companies focused on well-being, operational resilience and the retention of key people. Some 84 per cent of HR professionals agree that workforce agility is extremely or very important. 

Among the top priorities for companies seeking to reshape their business are the new and accelerated uses of technology, redeploying resources, workforce planning and rethinking the future of work. 

Just as important is that the insurance industry innovates in response to companies’ changing needs, increasing global volatility and emerging risks. “Successful solutions for the post-pandemic era will need to be more agile, strategic, targeted and scalable—but addressing underserved companies, economies and societies requires a fundamental shift in traditional insurance approaches. There is no question that the COVID-19 pandemic will change the way companies operate forever,” states the report.  

Insurance not seen as a solution 

Insurance was not viewed as a solution to help finance certain exposures and played a small role in what are now the most significant risks facing companies.  

About 80 per cent of survey respondents said their organization had moved beyond the first phase of react and respond, but this differs by region. This figure was higher in North America (89 per cent) and lower in Europe, the Middle East and Africa at 73 per cent and Latin America at 74 per cent. Of those companies in later phases, half report they’re in recovery mode, and 30 per cent are now in the reshaping phase, focusing on several key business priorities.