April, 2020

The business impact of COVID-19 so far

April 7th, 2020

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Table of Contents
01  The Business Impact of COVID-19 So Far
02  Webinar: AI for Data Driven Insurers, 14th April 2020, 3PM GST
03  Is the Future of Customer Service at home?
04  Embracing AI & Insurance in 2020 (Report)
05  The Technology ‘Upgrade Burden’ for Insurers



Barclays estimates that India’s growth rate could drop down to 2.5% from the current 4.5% for FY20, while business continuity planning floats to the top agenda amidst a looming financial crisis. Here are ten key insights on how the pandemic is affecting businesses and the economy:

  1. So far, the cumulative shutdown cost for India is estimated at 4% of GDP or $120 billion already. Over 50 per cent of Indian companies have seen their operations impacted and nearly 80 per cent have witnessed decline in cash flows.
  2. Most countries are still in the early stages of the pandemic, while China is slowly transitioning into the ‘post-peak’ period. This means China is most likely to get its industries up and running in time to meet the global ‘post-pandemic’ demand.
  3. Wuhan, the centre of the pandemic, is also one of the largest auto hubs in the world. With Wuhan shut for months, there’s going to be a huge shortage of components too. China, with its head start, could still manage to get low-cost products to the world, creating a massive competition issue for Indian exporters.
  4. Sales of ‘Cancel for Any Reason’ (CFAR) policies, that allows travelers to cancel for any reason including fear of travel from the coronavirus, spiked worldwide before the global travel shutdown came into effect. If the spread of the virus doesn’t slow down soon, many global insurers may stop selling travel insurance altogether.
  5. India’s smartphone production could be setback by four years, taking its global share from 16% to 9%.
  6. Indian MSMEs, that employ upwards of 110 million people, are too small to cushion the long-term impact of the pandemic — forcing many of them to go out of business.
  7. The pandemic will drive individual need for health insurance. During the SARS epidemic, critical illness and life policy sales soared in Asia. A similar phenomenon is expected post-coronavirus.
  8. Ongoing treatment requirements and eventual morbidity rates from the coronavirus are still speculative, making it harder to gauge actual costs for health insurers.

Enterprises investing in workplace mobility are surviving the pandemic.
Read our latest blog here.



According to a recent IDC study, most C-level executives are recognizing that AI isn’t mature enough within their organization and nearly half of all AI pilot projects in insurance have failed to take off. Mantra Labs will be hosting an exclusive Webinar for Insurance Business Leaders to help address these concerns, and chart the course forward with AI for Insurers. 

The Webinar will cover:

  • Real-world challenges in AI implem