The COVID-19 outbreak is likely to create significant change, including the birth of “insurance by subscription”, Finity Consultants Director Graeme Adams says.

While the virus has brought “waves of uncertainty and disruption” to insurance, he envisages that in future, “rather than organising and paying for insurance annually, a subscription-based insurance contract is for a much shorter period, typically one month”.

Mr Adams believes this will give more flexibility to consumers and insurers.

“The advantage of a subscription service is that products and services (including insurance) can be bundled together in the form of an account, where the customer can choose to purchase various levels of insurance, mitigation and restoration services,” he says.

“Insurance by subscription enables an insurer to be more customer-centric rather than the one-size-fits-all product centricity offered by most insurers.”

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