Many countries were caught off guard when SARS-CoV-2 spread among the population. Since epidemics and pandemics are likely to become more common in the future, governments and insurers are looking at options to increase the financial resilience of societies and economies ahead of the potential next event.
Insurers are facing higher claims pressuring underwriting profitability at the same time as investment returns are declining due to disruption on capital markets. This will affect the sector’s risk appetite and the food and drink sector will need to prepare earlier and more carefully for renewals to secure the desired protection.
A rapidly spreading coronavirus outbreak in Wuhan, China has disrupted businesses operating in the region, many of which have been shut down completely. Affected companies should review their insurance policies particularly with regard to extensions to see if they are covered for the resulting loss of revenues and costs.
Eager to snap up business in a hardening market, new capacity providers in the London market may offer attractive alternative options for insurance buyers.
Companies are changing their reporting practices to better reflect their commitment to Environmental, Social and Governance (ESG) factors. Underwriters should take note.
The insurance market is becoming more challenging for buyers as carriers look to improve their underwriting profitability and only offer cover when they fully understand the clients’ exposure. Insurers are reducing their capacity in some risk areas and tightening their policy terms and conditions. As a result, insureds need to spend more time preparing for renewals and disclose more information to persuade insurers and secure the best possible outcome.
Criminals using personal and corporate data against companies for multiple coordinated attacks is increasingly giving rise to claims disputes between different insurers and policies.