Examining Impact of COVID-19 on Insurance Sector
As business operators globally battle the Covid-19 pandemic, Ebere Nwoji writes on the impact on the insurance sector
It further observed that the gathering economic slowdown emanating from the pandemic was also driving interest rates even lower and increasing credit risk exposures from businesses facing possible default. Furthermore, within and outside the shores of Nigeria, one of the negative impacts of the pandemic on insurance is that whereas it is a new development that is not covered by any known insurance policy, based on special consideration, members of the insuring public are insisting that insurers pay some business interruption claims.
The insuring public is even pushing for a legislation on compulsory payment of such claims which is officially not covered. Meanwhile, global rating agency, A.M. Best, had estimated that if such business interruption claims are to be paid by insurers and reinsurers, as much as 50 per cent of re/insurer capital could be wiped out with just two months worth of claims being forced through.
Ebose, who expressed displeasure over government’s nonchalant attitude toward insurance and welfare packages for its workers, stated that some state governments have no health insurance, public liability, group personal accident or even group life policy for their staff just as he called on them to learn from the experience so far from COVID-19 to provide the necessary insurance covers for their workforce.
He also said the commission would pay priority attention to fast claims settlement and would consider interest paid on delayed genuine claims.
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