Bermuda insurers and reinsurers are demonstrating "operational resilience" as they meet clients' needs during the COVID-19 pandemic, according to the Association of Bermuda Insurers & Reinsurers. The industry has been quick to adopt remote working protocols and social distancing that support efforts to reduce the spread of the novel coronavirus.
The Insurance Information Institute (Triple-I) has released a fact sheet on "Understanding Business Interruption Insurance and Pandemics." "Business interruption policies generally require the losses to be caused by direct physical damage to the business's property," Sean Kevelighan, CEO of the Triple-I said in a statement.
The COVID-19 pandemic's impact on the broad economy will have a significant impact on commercial lines property-casualty (P&C) insurance, leading A.M. Best to move the sector's outlook to negative. A.M. Best expects continued investment market volatility in 2020 and a deep economic contraction in the second quarter.
The Federation of European Risk Management Associations (FERMA) has called on brokers and insurers to demonstrate enhanced understanding of the insurance needs of European businesses to help them get through the COVID-19 pandemic and the subsequent recovery. FERMA supports creating national pools to cover future pandemic risks.
A new analysis of business interruption losses to small US businesses as a result of the COVID-19 pandemic estimates those losses at $431 billion per month. An earlier estimate of business interruption losses for businesses with 100 or fewer employees pegged the figure at $255 billion.