Page 29 - The Insurance Times July 2020

CURRENT

CORONA CRISIS

& ITS IMPACT

ON INDIAN

INSURANCE

Introduction: But insurance claims may not reach the levels suggested by
the case numbers, even in China, where the bulk of the cases
As the COVID-19 pandemic continues to unfold, what began
remain concentrated. Taking life and nonlife together,
as a health crisis is quickly turning into a financial one. The
global economy is in turmoil and expected to shrink Moody's said Feb. 4, 2020 that it expected 2019-nCoV claims
overall to be "low" and that so far "there has been limited
significantly. Although potential scenarios depend on to
adverse impact on Chinese insurers." The rating agency said
what extent Corona Virus spreads and the readiness of our
the Chinese province of Hubei, which includes Wuhan,
country's public-health systems to respond to this Corona
Crisis. accounts for around 4% of both life and nonlife premiums in
China, with greater insurance penetration typically found in
the "affluent coastal cities." Hannover Re CEO Jean-Jacques
Life and nonlife insurers will be exposed to claims from the
outbreak of the Coronavirus, according to analysts, but there Henchoz said Feb. 5, 2020 that there would need to be "a
significantly bigger scenario" that went "way beyond" the
is a sense that claim levels on both sides of the industry could
be constrained by low insurance penetration in India and SARS outbreak in 2003 to hit the German reinsurer's
restrictive policy languages as written down in fine prints of mortality business.
the policy documents that are issued by the Insurers.
Hannover Re executive board member Sven Althoff said
coverage for non-damage business interruption resulting
About the author from infectious diseases is "mostly excluded" from both
property and aviation business, although there are some sub-
limits that offer coverage. Philip Kett, an equity analyst at
Anabil Bhattacharya
B.M.E. (Honours), F.I.I.I., stockbroker Jefferies, said in a Feb. 4, 2020 in his research
Retired Chief Manager, H.O. note that "…because the deaths so far had been in regions
National Insurance Co. Ltd. and socioeconomic groups where there was a high
Kolkata. protection gap, the life insurance ramifications would appear
to be limited- almost all critical illness policies cover named

The Insurance Times, July 2020 29