Protecting against the unknown
Insurance is likely to be one of the first things that springs to mind when you think about preparing for the unknown. Businesses will have a multitude of policies in place, often including cover for business interruption. But this is much more complicated than, say, car insurance. And that’s led to many disputes between insurers and policyholders over COVID-19. The scale of payouts is likely to be huge—Lloyds of London expects to pay out over £5 billion and incur significant losses. But even when payouts are made, they may be too late or too little to save many businesses.
Insurance is important, but it isn’t enough. To avoid disruption from future unknowns, businesses need increased agility, robustness and resilience. They need to be able to adapt quickly to whatever is thrown their way. When the lockdowns began, businesses that were more digital were able to cope better. They were able to pivot to home working and online sales and support in next to no time. Less advanced companies had more work to do.
COVID-19 has forced businesses to reconsider their business models and as a result, many have accelerated their digital transformation plans. Though this isn’t a situation any business wanted to be in, it is an opportunity for businesses to rethink how they operate and to make themselves stronger for the future.