3 Ways COVID-19 Accelerates E-Commerce and Creates New Environmental Exposures
Though its long-term effects remain unclear, there’s little doubt that the COVID-19 pandemic will change the world as we know it. Among its many potential impacts is the possibility that it will permanently alter the way we work and shop.
The “Amazon effect” is already in full force. Many brick-and-mortar stores have buckled under the pressure of e-commerce. Consumers have grown accustomed to the ease and convenience of online shopping and two-day delivery. Those trends were recently reinforced by stay-at-home orders, which leave shoppers little choice but to buy their necessary items online.
“I get my groceries delivered now. I never used to do that, but it’s the norm now,” said Barry Geisler, Divisional Senior Vice President & Chief Underwriting Officer, Great American Environmental. “Being confined to home is forcing people to find new ways to get the items that they need. And once they get used to that process and find it helpful, maybe even easier, they may continue to use those delivery services even after the lifting of social distancing restrictions.”
This shift ultimately will leave more spaces vacant and create opportunities to redevelop those locations into much-needed warehouses, distribution facilities, data centers and renewable energy sources to power it all. And that comes with environmental risk.
Here are three ways an accelerated “Amazon effect” will create new environmental exposures, and how the right insurer can help mitigate the risk.
To learn more about Great American Insurance Group, please visit their website.