{"id":20049,"date":"2020-10-26T14:14:05","date_gmt":"2020-10-26T18:14:05","guid":{"rendered":"https:\/\/www.insurance-canada.ca\/?p=68575"},"modified":"2020-10-26T14:14:05","modified_gmt":"2020-10-26T18:14:05","slug":"in-the-pandemic-insurers-can-absorb-customer-life-and-health-claims-but-not-business-losses-from-lockdown-measures","status":"publish","type":"post","link":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/2020\/10\/26\/in-the-pandemic-insurers-can-absorb-customer-life-and-health-claims-but-not-business-losses-from-lockdown-measures\/","title":{"rendered":"In the Pandemic, Insurers Can Absorb Customer Life and Health Claims, but Not Business Losses From Lockdown Measures"},"content":{"rendered":"<ul>\n<li class=\"subtitle\"><strong>New research by The Geneva Association finds that life and health risks for pandemics similar to COVID-19 are insurable: they are generally non-systemic and modellable.<\/strong><\/li>\n<li><strong>Property &amp; casualty (P&amp;C) insurers, on the other hand, would have to collect business interruption policy premiums for 150 years to make up for projected global output losses in 2020 related to COVID-19.<\/strong><\/li>\n<li><strong>Insurers have an important role to play in protecting businesses and supporting economies, but it must be through participation in government-led initiatives. A Geneva Association report on \u2018pandemic risk solutions\u2019 is forthcoming later in 2020.<\/strong><\/li>\n<\/ul>\n<p>Zurich, <span class=\"aCOpRe\">Switzerland<\/span> (Oct. 26, 2020) \u2013 Amid widespread public discussion on how to address the deep financial implications of COVID-19, The Geneva Association, in collaboration with the University of St. Gallen, has issued a new evidence-based study on the risk-taking capacities of insurers related to pandemics.<\/p>\n<p>\u201cWhen COVID-19 hit, insurers moved quickly to provide relief to their customers \u2013 for example, through reduced premiums \u2013 safeguard their employees, and engage with governments,\u201d said <span class=\"xn-person\">Jad Ariss<\/span>, The Geneva Association\u2019s Managing Director. \u201cThey are promptly paying all legitimate claims where pandemic risk is covered. But, as our research shows, the pandemic exposed a massive protection gap in the area of business continuity risk. We need to find sustainable solutions which harness the industry\u2019s potential contributions while maintaining its solvency and viability.\u201d<\/p>\n<p>\u201cInsurers are providing meaningful support to people in the areas of health and life during COVID-19. But pandemic-induced business losses defy basic, widely-accepted criteria for insurability,\u201d said <span class=\"xn-person\">Kai-Uwe Schanz<\/span>, The Geneva Association\u2019s Head of Research &amp; Foresight and the leading author of the report. \u201cUnlike risks like natural catastrophes, they occur on a global scale and are not diversifiable. Governments and insurers urgently need to figure out the right partnership modalities to prepare for \u2013 and respond to \u2013 extreme risks like pandemics. The Geneva Association\u2019s research will support this endeavour.\u201d<\/p>\n<p>Following the publication of <i>An Investigation into the Insurability of Pandemic Risk<\/i>, The Geneva Association will publish <i>Public- and Private-Sector Solutions to Pandemic Risk<\/i> later in 2020.<\/p>\n<h4 class=\"smallhead\"><b>About The Geneva Association<\/b><\/h4>\n<p>The Geneva Association is the only global association of insurance companies; its members are insurance and reinsurance CEOs. Based on rigorous research conducted in collaboration with its members, academic institutions and multilateral organizations, The Geneva Association:<\/p>\n<ul>\n<li>Identifies and investigates key trends and risk areas that are likely to shape or impact the insurance industry and develops corresponding recommendations for the industry and for policymakers;<\/li>\n<li>Provides a platform to its members, policymakers, academics, multilateral and non-governmental organizations to discuss these trends and recommendations;<\/li>\n<li>Highlights the positive contributions of insurance to a better understanding of risks and to building more resilient and prosperous economies and societies \u2013 in both developed and emerging countries \u2013 and thus a more sustainable world.<\/li>\n<\/ul>\n<p>In total, the companies of Geneva Association members are headquartered in 25 countries around the world; manage <span class=\"xn-money\">USD 17.1 trillion<\/span> in assets; employ 2.4 million people; and protect 1.8 billion people.<\/p>\n<p>For more information, please visit <a href=\"https:\/\/www.genevaassociation.org\/\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">www.genevaassociation.org<\/a>.<\/p>\n<p class=\"referencetext\"><i>SOURCE: The Geneva Association<\/i><\/p>\n<p> Tags: <a href=\"https:\/\/www.insurance-canada.ca\/tag\/business-interruption\/\" rel=\"tag\">Business Interruption<\/a>, <a href=\"https:\/\/www.insurance-canada.ca\/tag\/coronavirus\/\" rel=\"tag\">coronavirus<\/a>, <a href=\"https:\/\/www.insurance-canada.ca\/tag\/epidemic\/\" rel=\"tag\">epidemic<\/a>, <a href=\"https:\/\/www.insurance-canada.ca\/tag\/market-dynamics\/\" rel=\"tag\">market dynamics<\/a>, <a href=\"https:\/\/www.insurance-canada.ca\/tag\/report\/\" rel=\"tag\">report<\/a>, <a href=\"https:\/\/www.insurance-canada.ca\/tag\/the-geneva-association\/\" rel=\"tag\">The Geneva Association<\/a><br \/>\n<a href=\"https:\/\/www.insurance-canada.ca\/2020\/10\/26\/geneva-association-pandemic-claims-lockdown-business-interruption\/\">Read the original article at Insurance-Canada.ca <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>New research by The Geneva Association finds that life and health risks for pandemics similar to COVID-19 are insurable: they are generally non-systemic and modellable. Property &amp; casualty (P&amp;C) insurers, on the other hand,&#46;&#46;&#46;<\/p>\n","protected":false},"author":578,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[],"tags":[],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/posts\/20049"}],"collection":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/users\/578"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/comments?post=20049"}],"version-history":[{"count":0,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/posts\/20049\/revisions"}],"wp:attachment":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/media?parent=20049"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/categories?post=20049"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/tags?post=20049"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}