Page 31 - Insurance Times September 2020

Class US$ BLNS Non- Estimated Reinsurance Remark
Life Premium Premium
Personal Property 210 2. Reinsurers pay 2019 claims
60 covered in Reinsurances but from
Commercial Property 220 2020 renewal COVID19 Pandemic
Risk are excluded or covered with
restrictive and prohibitive
coverage
Liability 200 3. Impacts of economic lockdowns on
Investments incomes of Insurers
W.C.A 60 40 and Reinsurers.

Engineering 20
Marine 30 15
Aviation 5 4

Medical 1400 55
Accident & Health 270 46
Others 234 35
3376 275

Source : SIGMA Reports 4/2020

C) COVID-19 Pandemic Storm Impacts Y Global Economies may be contracting by around 4%.
EURO currencies traders may be hit hard. US$ may
Y Global GDP will be reduced by around 4% in 2020 and
remain static in International Trades.
further reduced in 2021.
Y China may suffer gradually closing down of outsourcing
Y On an average global Premium are likely to reduce by
units of Western Economies. China loses TRUST of all
3% up to 2021. 2019 levels are likely to be resumed by
countries and may suffer declines in all fields of economy
2021 end.
Y Around 20 largest economies may be able to recover
Y Global Financial Crisis - GFC will generate Recessionary
Effects which may reset up to two years from COVID-19 impacts but may be able to regain
capacity by 95% over 2019 level.
Y Life sector will be hit hard by COVID-19 both in terms
Y Emerging Economies of Asia Pacific, African Middle
of COVID-19 and drastic reduction in Investment
Eastern and Latin American Economies will suffer
returns on all funds of life Insurance available for
investments drastically due to COVID-19 impacts. The Task of
Economic Recoveries will be very difficult due to
Y Longer Periods of Economic Lockdowns have already Lockdown and rising unemployments.
paralyzed Manufacturing Industries, Entertainment
Y Lowering Interest rates will be for large periods on
Industries, Tourism, Hotels, Religious and Social
congregation an specific occasion, Rail, Road, Air, Traffic Investments by Insurers. Political, Economic and Military
Tensions will increase between Western economies
Lines and Revenue of State by Economic Lockdowns,
rising in the world like India, Hong Kong, Taiwan etc.
increasing Unemployment, Labor unrest Trade Wars
among Giant Economies and so on. Y COVID-19 Virus impacts are likely to be longer lasting
even beyond 2022.
Y Insurance Industry's profitably is likely to be supported
by hardening of Rates acceleration of New Risks in all Y Recessionary Trends may give way to STAGFLATION.
growing in economies. Scenario i.e. Weaker Recovery in 2021 due to stagnated

The Insurance Times, September 2020 27