The COVID-19 pandemic has extracted a terrible toll on human life and has caused significant disruption to business and investment worldwide. The true economic impact of the pandemic remains to be determined and one issue insurance market participants are currently trying to assess is what claims activity may flow as a result. The current position is unprecedented in modern history and, although it is unclear at this stage how far we can draw on previous financial crises as indicators of future developments, the pandemic is, in our view, likely to have an ongoing material impact on claims activity in a number of areas.
We have set out our immediate thoughts on this possible impact in the following 11 lines of business, which we hope you will find helpful.
Whilst there is an understandable focus on the negative impacts that the pandemic could have on the insurance sector, it may, in time, accelerate more efficient ways of working and bring new opportunities for the industry to assist businesses and society mitigate against the financial risks that could arise from similar events in the future.
If there is any issue you would like to discuss then please do not hesitate to contact me or your usual CMS contact.
