ROLE OF INSURANCE INDUSTRY IN CORONA OUTBREAK

Role of the insurance industry in corona outbreak

The role the insurance industry has to play during COVID-19 can never be ignored even in the post-COVID-19 era. Sustainability is the key here and the insurance industry makes sure that even due to COVID-19 nobody gets hurt or should feel the financial burden. The most important part is played by business or commercial insurance than comes health insurance, life insurance, and other categories. All these are very critical in making things secure for the customer as well as paving ways for the future. The aim is to minimize the risk factors associated and maximize the advantages that insurance shall provide in the future. Another major insurance factor is life insurance as life is a threat as anyone can have the pandemic. This is evident from the number of deaths that have been associated with COVID-19 and the number of business losses it has given to many people around the world. 

Insurance industries are further insured by huge insurance groups and financial institutions known as Re-insurers. These companies make sure that the insurance is covered anyways irrespective of the losses sustained by the first insurance company. 

There is a huge fear factor associated with the insurance industries in times of COVID-19. The cancellation of major global events is an example; one of them is Olympics 2020 and the other being Wimbledon 2020. Both are large scale mega-events Olympics being an international event that takes place with a gap of 4 years. The cancellation of Tennis tournament Wimbledon happened a second time after the First World War. 

All these major losses due to uncertain scenarios like COVID-19 Pandemic are covered by insurance companies so that the losses can be sustained. The aim of the insurance company is to minimize the risks of loss and make sure that an event or a business is covered with losses. This is due to the massive impacts it can have.  

Courtesy of MBE BLOG