Insurance covering extra costs due to global warming launches in Hungary

Europe’s leading insurance and financial services group offers insurance to cover the extra costs due to climate change if the outside temperature exceeds 37 degrees Celsius.

The world is changing day by day, and so are the demands for new and different insurance solutions and services. The insurance sector is often regarded solely as a provider of compensation for losses, but it plays an integral role in the risk-management cycle, for example, this sector develops solutions that contribute both to the mitigation of and the adaptation to climate change (e.g. insurance against weather-related disasters).

During the last few years, several well-known companies, such as Facebook, Google, or Amazon, entered the insurance sector as “alternative providers”, and these companies are undoubtedly changing this market segment, explains You Talk Insurance. For example, the ability to thoroughly understand the customer and implement technology to effectively pre-empt claim situations is becoming a key element.

Thus,

insurers have to monitor the rapidly changing consumer needs so they can serve them with unique services and an outstanding customer experience.

The coronavirus pandemic has moved both businesses and consumers out of their comfort zone and showed the practicality and usefulness of personalised products and contents, writes Napi. Companies have learned that it is essential to pay attention to existing customers and to strive to simplify customer processes, involve customers in product development, and respond quickly and efficiently to customer needs.