The governments from all across the globe have implemented the lockdown pro-actively to prevent the spread of the deadly virus, COVID-19. But this step will certainly have a great impact on the insurance companies. The business premium was supposed to grow this year as a result of which this year was supposed to be a great year for the insurance companies. But unfortunately, they are now in a situation, where matching the profit of the last year is also becoming quite a daunting task for them.
Impact of COVID-19 on the insurance companies
Most of the cities are under lockdown, and so quite the impact on the business of the insurance company is quite huge. Many flights have been cancelled and it is for this reason that the customers are not coming up with travel policies. The policies where the insurers need to do a medical test have slowed down. As of now, the NRIs are also not opting for any kind of insurance policy. It is thus quite clear that the lockdown has had a great impact on the insurance companies.
The number of death claims has increased to a great extent
As you can well understand, that the number of new policies has decreased but due to COVID-19, the number of death claims has increased. The governments have indeed acted quite fast and went for a lockdown before the number of deaths increases, however, given the way this virus is spreading there is a high possibility of the number of deaths to increase rapidly within the coming weeks. The coming weeks are crucial and you have to wait and see if the death rates can be reduced. Several landlords these days are also getting the best business landlord insurance Ireland.
The insurance companies have to honour the death claims, but the impact will show on the cost of the insurance policies of the future. Moreover, insurance companies are also trying to come up with new products that will cater to the correct situation. But the biggest problem here is that since the market has crashed, so many companies who have more of ULIP policies might prefer taking the exit route. The prospect of the insurance going back to its original momentum will depend upon the amount of time the country will take to get back to the momentum after recovering from the emergency of COVID-19.
Most of the people do have a health insurance policy of some type, but the insurance companies might not welcome the claims of patients who have been hospitalized because of the corona. This is because this disease has been already declared as pandemic and therefore the insurance companies are no longer bound to entertain such claims. The business landlord insurance will also be immensely helpful for all the landlords.
Lesser number of accident claims
Since the entire country is going through the lockdown period, so there is a much lesser number of vehicles on the road. This means that the chances of accidents are reduced and therefore the insurance companies will have to handle a much lesser number of such claims. The government has also asked the insurance companies to extend the date of their renewals as we are going through a period of emergency and people might find it difficult to renew their policies.
It is very important to get a business insurance Ireland done. This will help you to get compensated in case your business suffers a loss. These days business insurance has become highly popular throughout the world