1. bookVolume 59 (2021): Issue 4 (December 2021)
Journal Details
License
Format
Journal
eISSN
2217-3668
First Published
15 Apr 2014
Publication timeframe
4 times per year
Languages
English
access type Open Access

The Impact of Covid-19 on the Business of Insurers and Reinsurers

Published Online: 09 May 2022
Volume & Issue: Volume 59 (2021) - Issue 4 (December 2021)
Page range: 445 - 459
Received: 22 Sep 2020
Accepted: 30 Dec 2021
Journal Details
License
Format
Journal
eISSN
2217-3668
First Published
15 Apr 2014
Publication timeframe
4 times per year
Languages
English
Abstract

According to the impact, infectious diseases are a critical risk for 2020 and the following years in the Global Risk Report. The realization of the Covid-19 virus set the pandemic as a crucial global risk for humans, the economy, and society. The main idea of this paper is to give insight into the global socio-economic consequences of the actual Covid-19 pandemic, with a specific view of the business of insurance and reinsurance companies, who are responding to the widening of the COVID-19 pandemic on multiple fronts—as claims payers, employers, and investment managers. Considering that both individuals and businesses face high costs and losses regarding disruption of travel, business interruption, and supply chains, many expect insurers to reimburse some of these costs and losses. Insurance companies are also significant investors in financial markets and will face losses due to equity and fixed income market losses regarding decreasing interest rates as an attempt of central banks worldwide to support their economies. The current crisis can also be considered the possibility of improving the insurance coverage related to pandemics by establishing (re)insurance schemes and pooling arrangements for other catastrophic risks and developing public-private partnerships to support the insurability of pandemic risk.

Keywords

JEL Classification

Anđelković, A., Barac, N. & Milovanović, G. (2014). Upravljanje faktorima rizika: Mehanizam za povećanje otpornosti lanaca snabdevanja. Ekonomske teme, 52(1), 81-99. Search in Google Scholar

Crocker, K. J. (2003). Risk and Risk Management. In Meyer, Donald J. (eds.), The Economics of Risk. Kalamazoo (MI): W.E.Upjohn Institute for Employment Research. Search in Google Scholar

Committee of Sponsoring Organizations of the Treadway Commission - COSO, (2004). Enterprise Risk Management - Integrated Framework, Executive Summary. Search in Google Scholar

Deloitte, (2020). Understanding the sector impact of COVID-19 Insurance. Search in Google Scholar

Ernst & Young https://www.ey.com/en_gl/insurance/how-covid-19-impacts-financial-reporting-and-operations-for-insurers Search in Google Scholar

Fitch Rating Major European Reinsurers Resilient to Pandemic Review - 1Q20 Results Are Not Indicative for the Future, Special Report, Fitch, https://www.fitchratings.com/research/insurance/major-european-reinsurers-resilient-to-pandemic-review-1q20-results-are-not-indicative-for-future-27-05-2020 (pristupljeno 05.06.2020.) Search in Google Scholar

Insurance Europe COVID-19 https://www.insuranceeurope.eu/covid-19-coronavirus (pristupljeno 10.05.2020.) Search in Google Scholar

Njegomir, V. (2018). Upravljanje rizicima u osiguranju i reosiguranju. Zagreb: Tectus. Search in Google Scholar

Njegomir, V. (2020a). Korona virus, Svet osiguranja, 4. Search in Google Scholar

Njegomir, V. (2020b). Uticaj COVID-19 na osiguranje. In: XXIII Međunarodni skup Naknada štete i osiguranje, Valjevo. Search in Google Scholar

OECD (2020). Initial assessment of insurance coverage and gaps for tackling COVID-19impacts. Search in Google Scholar

PwC, (June 2020). COVID-19: Impact on the Indian insurance industry. https://www.pwc.in/assets/pdfs/services/crisis-management/covid-19/covid-19-impact-on-the-indian-insurance-industry.pdf Search in Google Scholar

https://www.reinsurancene.ws/covid-19-insurer-reinsurer-loss-reports/ Search in Google Scholar

SwissRe Group (2020). World insurance: riding out the 2020 pandemic storm, Sigma 4/2020 Search in Google Scholar

Vaughan, E, J. & Vaughan, T. M. (2008). Fundamentals of Risk and Insurance. Hoboken (NJ): John Willey & Sons, Inc. Search in Google Scholar

World Economic Forum, (2020). World Economic Outlook, https://www.imf.org/en/Publications/WEO/Issues/2020/01/20/weo-update-january2020 (pristupljeno 05.03.2020.) Search in Google Scholar

WHO Coronavirus Disease (COVID-19) Dashboard, https://covid19.who.int/ (pristupljeno 7.09.2020) Search in Google Scholar

Recommended articles from Trend MD

Plan your remote conference with Sciendo