Coronavirus (COVID-19)—insurance considerations

The following Insurance & Reinsurance practice note provides comprehensive and up to date legal information covering:

  • Coronavirus (COVID-19)—insurance considerations
  • Impact of coronavirus on the insurance industry
  • Property and business interruption insurance
  • Property insurance and loss of rent
  • Business interruption insurance
  • Event cancellation insurance
  • Travel and aviation insurance
  • Travel insurance
  • Aviation insurance
  • Liability insurance
  • More...

Coronavirus (COVID-19)—insurance considerations

This Practice Note considers the impact of the pandemic on the insurance industry, identifies the types of insurance policies that may provide cover for coronavirus (COVID-19) related losses, summarises the typical coverage positions and looks at other issues that may arise.

Impact of coronavirus on the insurance industry

As a result of the coronavirus pandemic, the insurance industry has faced higher claims exposure, increased operating expenses and low interest rates on investment returns.

Regulators understand the severity of the crisis and emphasised the critical importance of insurers’ operational resilience. The Financial Conduct Authority (FCA) stressed the importance of treating customers fairly, having regard to the extraordinary challenges that many policyholders are having to deal with during the coronavirus pandemic.

Coverage issues across many classes of business arose, including how to assess causation and consideration of the requirement of physical damage.

Complexities such as divergent dates upon which different governments recognised coronavirus as a notifiable disease, and the different approaches governments have taken to managing the spread of the outbreak may be expected to produce some novel aggregation arguments, especially at the reinsurance level.

For further consideration of the aggregation of coronavirus related issues, see News Analysis: Coronavirus (COVID-19) Bulletin—Aggregation in insurance and reinsurance.

Life insurance, trade credit insurance and event cancellation insurance have been impacted severely. Certain classes of insurance suffered fewer claims, ie motor insurance, due

Popular documents