The unprecedented economic and psychological shocks of the corona virus pandemic and social-distancing measures put in place across different countries is expected to cause a largely short-term impact on the financial service sector including insurance.
According to a recent moody’s investment service report , ‘there will be a far-reaching longer term effects that will fundamentally reshape many aspects of the macro economy,business life and consumer behavior’. In response to societal and competitive pressures brought about by the pandemic, some insurers are refunding profit from expected lower loss rates back to their clients and extending pandemic risk coverage beyond their contractual liability. Most insurers have been under strong pressure from governments and societies to pay corona virus-related claims that are currently not covered by existing language such as business interruption insurance.
They have also been asked to accept delays in premium payments without cancelling coverage and to provide other means of financial relief to their customers.

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