Although it is too early to measure Covid-19’s full or long-term impact on the insurance industry, it will likely cause the market to shift substantially, according to Marsh JLT.
“It [Covid-19] is already having global repercussions that we have not seen since 2008/2009 and 2001, and there is a likelihood that we will see a substantial shift in insurance capacity and premiums,” Marsh JLT Specialty says.
General insurers will likely face claims from the pandemic and feel its impact on their own company valuations and investments, states the broker in a report.
Marsh JLT Specialty says Covid-19 and other communicable-disease clauses and exclusions have already started to come into play in new policies or at renewal. But it adds that, as yet, there is little consistency “as a result of the haste” in putting the clauses together. Marsh JLT Specialty says clients and brokers must fully consider the clauses to avoid legal challenges in loss scenarios.
The broker adds that practical challenges for insurance buyers caused by the pandemic include working remotely, the postponement or cancellation of engineering survey visits, and loss adjuster site visits in the event of a claim.