The economic impact of COVID-19 has worsened sharply, posing a challenge to insurers’ financial resiliency. This could lead to targeted downgrades or outlook changes for Asia-Pacific insurers over the coming weeks, according to S&P.
Delaying the Olympics is likely to cost insurers much less than canceling the Tokyo Games altogether, with a chance that some of those involved may not have policies specifically covering a postponement, industry sources say.
To offset the crushing costs of trying to stem a global epidemic, the World Bank and partners announced the creation of “pandemic bonds”, with the idea was to leverage private capital from Wall Street firms that would help stricken poor countries. But since the bonds were launched in 2014, investors have reaped more profits than countries battling epidemics.
Claims presented for the coronavirus will be complex in terms of loss measurement but early engagement with the insured to understand the potential impacts is crucial to managing the loss, said Crawford Forensic Accounting Services (CFAS) in a whitepaper on the insurance impacts of the novel coronavirus.
Most companies in Britain don’t have insurance cover for closures caused by the coronavirus outbreak, the Association of British Insurers said on Tuesday.
Bancassurance, or selling of insurance through bank partners, is one of the most popular distribution channels in Asia today, as shown by insurers signing blockbuster long-term deals across the region. For many insurers and banks, this channel is a major revenue stream, but, of course, it is not flawless.
The Federal Reserve cut short-term interest rates by half a percentage point on Tuesday in an effort to protect the economy from more damage from the virus outbreak. What does all this mean for home buyers? Or those looking to lock in a mortgage rate? For owners considering a refinance? And for those holding an adjustable-rate mortgage?
Organizers of events called off because of the coronavirus are likely to miss out on insurance payouts because typical policies do not cover epidemic outbreaks. Hotels hit by cancellations may fare better.
Global insurers and reinsurers are exposed to the coronavirus outbreak directly through a potential spike in claims, and indirectly through the impact on economic growth and the resultant financial market volatility, according to a report from Moody’s Investors Service.
Global insurers face a hefty bill if the coronavirus forces the cancellation of the Summer Olympics in Tokyo, with estimates of the cost of insuring the sporting showpiece running into billions of dollars.