Impact of COVID-19 on the Indian Insurance Sector

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Indian insurance is generally well prepared for key loss events, including pandemics. However it will take some time before the financial implications are fully disclosed to insurers. Insurance companies are responding to the COVID-19 pandemic on several fronts. EFFECT OF COVID 19 ON EDUCATION Each individual has its own particular challenge, not just for insurance but for the whole of the economy and for the public.

A year that could have seen a remarkable year in the Indian insurance sector’s premium growth is now suddenly facing an impossible task: harmonising the figures from the last year seems daunting. The highest industry collection has been observed in the last three months of the financial years.

Premium collections are starting to feel the effects of the lockdown, which took place in serious fashion last week. The effect is huge because of the lockdown in most cities. Customers are unable to purchase travel insurance due flight cancellations. It is difficult and costly to buy new policies if insurers require that you undergo medical tests. NRIs with past travel history and NRIs are not eligible for any new policies. The overall impact on the insurance segment is diverse.

In addition to losing new business premiums the insurance sector is also facing the challenge of increased death claims. The government is positive and has ordered a total lockdown lasting 21 days even though the death toll was rising to double-digits. But, it is impossible to take for granted the early signs and size of the country that show evidence of community spread. Insurance agencies believe that it would be too premature at this point to comment on exponential augmentations in death claims for life insurance. India must be able manage the spread to minimize any adverse effects on life insurance claims. Concerning life insurance policies: While many companies will continue to honor current claims, the cost of future policies could rise and the number that provide comprehensive coverage may fall. GET MORE INFO