Source: asiainsurancereview.com

According to a new report from Allianz Global Corporate & Specialty (AGCS) called ‘COVID-19 – Changing Claims Patterns’, claims trends and risk exposures in different lines of insurance are likely to evolve in both the mid- and long-term as a result of the COVID-19 pandemic.

With economic activity being reduced during the pandemic’s lockdown phases, the report found that traditional property and liability claims have been subdued. These claims have lessened most notably in the aviation and cargo sector as well as in many other industries with fewer accidents at work, on the roads and in public spaces. Meanwhile, AGCS global head of claims Philipp Cremer pointed out that his firm has seen claims in some lines of business, such as entertainment insurance, surge during the pandemic. “There is still the potential for claims to occur as factories and businesses restart after periods of hibernation, and given the longer development patterns for third-party claims in casualty lines,” he said.

While estimates regarding claims vary, the insurance industry is currently expected to pay claims related to the pandemic of as much as $110bn in 2020 according to Lloyd’s. AGCS alone has reserved about EUR488m ($571m) for expected COVID-19 related claims, especially for the cancellation of live events and the disruption of movie or film productions in the entertainment industry.

“The coronavirus outbreak has reduced risk in some areas while, at the same time, changing and heightening it in others. The wider changes in society and industry brought about and accelerated by the pandemic are likely to have a long-term impact on claims patterns and loss trends in the corporate insurance sector,” said AGCS chief claims officer Thomas Sepp in the report.

According to him, the growing reliance on technology, shift to remote working, reduction in air travel, expansion of green energy and infrastructure and a rethinking of global supply chains will all shape future loss trends for companies and their insurers.