Page 22 - The Insurance Times May 2025

Impact of Covid

Impact of COVID

on Indian Insurance

Industry - Need to

Be Risk Ready Dr Sonjai Kumar

CFIRM, SIRM

There is a continuous presence of uncertainty since COVID from late 2019. The people globally
witnessed unprecedented deaths, economic volatility due to forced lockdown, loss of jobs resulting
in a rise in unemployment adversely impacting gross domestic product of most nations.

Introduction The high degree of uncertainty requires a proper risk man-
agement plan to steer the business out of the woods. The
There is a continuous presence of uncertainty since COVID
purpose of the article is to analyze the current prevailing
from late 2019. The people globally witnessed unprec-
risks and look back to the risks that are already crystalized,
edented deaths, economic volatility due to forced lockdown,
take the lessons and prepare for the future. There are only
loss of jobs resulting in a rise in unemployment adversely
two ways to manage risk, either you plan to manage risk or
impacting gross domestic product of most nations. The two
do crisis management.
years of 2020 and 2021 saw dissolving many business mod-
els where they had to change the business and start afresh.
Here the example considered is the Indian insurance indus-
The lockdown resulted in an increase in online
try for the period of 2019-20 to 2023-24 as how COVID
culture.
impacted its business parameters. And whether it serves as
a warning signal for the future risks resulting from tariff war,
Just when scientists overpowered the COVID, the Ukraine-
Russia war started in February 2022. This led to a rise in climate risk or some unprecedented new risks that we are
currently not aware of.
global inflation, shortage in food supply, deglobalization, and
adverse impact on the already stressed environment. The
rise in inflation caused most of the central banks to increase ̸» ¬©± §»¿®­ ±º îðîð ¿²¼ îðîï ­¿©
interest rates, making it difficult for home seekers and rais- ¼·­­±´ª·²¹ ³¿²§ ¾«­·²»­­»­ ³±¼»´­
ing capital for new businesses.
©¸»®» ¬¸»§ ¸¿¼ ¬± ½¸¿²¹» ¬¸» ¾«­·²»­­
The further conflict of Isreal and Hamas in October 2023 ¿²¼ ­¬¿®¬ ¿º®»­¸ò ̸» ´±½µ¼±©²
continued level of high inflation, increase in crude oil price ®»­«´¬»¼ ·² ¿² ·²½®»¿­» ·² ±²´·²»
further worsening of global economy, rise in geo-political risk,
volatile stock market. ½«´¬«®»ò

The Insurance Times May 2025 21