ABSTRACT

Investigation into the Insurability of Pandemic Risk   [open pdf - 0B]

From the Executive Summary: "COVID-19 [coronavirus disease 2019] and the draconian shutdown measures adopted by many governments to contain it have plunged the global economy into the deepest recession since the Second World War. For the global insurance industry, too, the pandemic is a severe loss event. Despite this massive strain, initially exacerbated by a steep decline in capital markets, insurers worldwide promptly paid legitimate claims in all areas where pandemic risk was intended to be covered; for example, under life, health and event cancellation policies. In addition, also during the lockdowns, insurers have continued to pay claims and benefits unrelated to the pandemic; for example, in motor, liability and annuities insurance. [...] The extent of correlation and aggregation of pandemic losses for businesses across the globe has put the insurability of pandemic risk in the spotlight. It touches upon the pivotal question of whether pandemics are a type of risk for which the insurance industry can play any kind of role or if this is the type of risk where traditional insurance products are not the solution."

Author:
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Date:
2020-10
Series:
Copyright:
Geneva Association
Retrieved From:
Geneva Association: https://www.genevaassociation.org/
Media Type:
application/pdf
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