Influence of COVID-19 and Indian Insurance Sector from Ilse Moldan's blog

Indian insurance is generally well-equipped for major loss events, including pandemics. However, it will take some time for the financial implications to be fully understood by insurers. As owners and claims payers as well as investment executives, insurance companies are responding to the COVID-19 spread on many fronts. Each facet has its own unique challenge, not only for the insurance industry but also for the global economy as a whole and the general public. CAUSES OF COVID 19

One year that could have been an extraordinary year for India's insurance sector in terms premium growth is suddenly staring at a situation where harmonising last year's figures seems daunting. The three most recent financial year months have been traditionally those that witnessed the industry's highest collection.

Now given the lockdown in serious last week of April, premium collections are beginning to suffer considerably. The impact is severe because many cities are currently in lockdown. Customers are unable to purchase travel insurance due flight cancellations. Purchasing new policies where insurers need to take up medical tests are consuming time and has a delay. NRIs, as well as those who have a track record of traveling, are no longer eligible to apply for new policies. Overall, the insurance sector has been hurt in many different directions.

Insurers are facing an increased risk of death due to loss of new business and premiums. Though the government has proceeded positively and gone for a total lockdown of 21 days even prior to the number of death toll ascent to double digits. But, it is impossible to take for granted the early signs and size of the country that show evidence of community spread. Insurance agencies think it would be premature to make a comment about exponential growth in life insurance death claims. India must be able manage the spread to minimize any adverse effects on life insurance claims. When it comes to life insurance policies there are a few companies that will still honor existing claims. The price of future policies will increase, and the number of policies with comprehensive coverage could fall. GET MORE INFO