Coronavirus is impacting the insurance market |Auto Insurance

The coronavirus pandemic is impacting the insurance market and to overcome the situation, insurers have online service, including the option of renewing car insurance online. Know more!

The coronavirus pandemic came like an avalanche across the world, and is already causing negative impacts on the global economy. Small businesses are suffering serious dangers, due to the lack of consumers.

It is still too early to measure and even imagine the impact that could actually happen financially, but it is estimated at billions of dollars worldwide.

In the insurance area, impacts will be limited, at least in the short term. Not all companies are covering medical expenses arising from Covid-19, the disease caused by coronavirus infection.

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So, what is the impact of the pandemic on the insurance sector?

According to experts, the impact is similar to what has occurred in pandemics and epidemics in the past. The emergence of a pandemic of a certain disease can lead to a drop in production. However, it is not a case that activates the insurance. This is different from a natural catastrophe, which triggers insurance due to loss of profit.

In the case of coronavirus, the impact happens gradually, and does not necessarily cause a disaster. The epidemic/pandemic is a factor that does not generate risks covered by policies, such as natural disasters.

Therefore, the impact on the insurance sector is not expected to be as great as on other economic sectors. The insurance policies that may be most impacted are travel insurance and life insurance. In addition to minor insurance such as education, work accident insurance, among others.

Car insurance may be the one that will suffer the least impact, due to the possibility of purchasing and renewing it online. However, it is expected that an adjustment in values ​​will be made if the country's economy is severely affected post-outbreak.

Do insurers tend to analyze epidemic coverage?

The idea is that the demand for coverage of epidemic and pandemic cases will increase after the coronavirus outbreak. As many companies had to quickly think about how to serve their customers in this emergency, it is natural for companies to develop a plan with coverage in cases of epidemics/pandemics in the future.

What about private health insurance? What is the impact of this pandemic?

People who contracted the coronavirus are covered by the health plan, however, being at a pandemic level, coverage may begin to be questioned by operators. Although the courts have a strong tendency to give the benefit to the consumer, if this dispute goes to trial, several cases could become a litigious dispute between companies and their consumers.

Life insurance companies, for example, may also begin to refuse to pay compensation for fatalities caused by the coronavirus pandemic.

In Europe, the majority of the population affected by the virus has their healthcare costs paid by the government. In Brazil, where private plans have a great importance, serious losses could arise for health plan operators resulting from the pandemic.

Car insurance is a less affected modality, as many companies offer online service. In addition, there are several websites that have partnerships with the best car insurance companies and carry out quotes and renewals, such as SeguroAuto.org.

Will company insurance be impacted by the pandemic?

It is estimated that property insurance, whose function is to protect companies' assets, is the sector that will be most used. Mainly in companies in the hotel, tourism and air transport sectors, as they are directly affected by event and travel cancellations.

This insurance is activated when unexpected events cause loss or damage to property, which is unfortunately expected after the outbreak of the pandemic.

This is a time for caution, waiting and seclusion. After the outbreak, Brazil must prepare to serve the population in any way they need.

Sources: Estadão and SindsegSP.