Thursday, April 9, 2020

THE FEAR FACTOR – CANCELLATION OF EVENTS

cancellation events
cancellation events
As an example, we can assume that Munich-Re is the re-insurer for the insurance group called Aviva. In order to avoid bankruptcy and financial losses. One of the largest re-insurers, Munich-Re will cover the Aviva group. This is in similar crisis situations like COVID-19. To be exact it’s like claiming their own cover while the insurance companies incurred losses in business activities.

The long term effects of the disease and its effects on people are linked with the fear factor of what’s related to the impacts. The insurers and the business community should have a fear of the long-term effects and impacts of such a pandemic that has caused huge deaths worldwide.

The summer Olympics of Tokyo can be taken as an example. A huge event taking place in Tokyo Japan, with mega investments as well as the involvement of so many countries. In short, it is one of the mega sports events, similar in stature to a football World Cup, as the viewership and audience are mammoth. The fear factor is the cancellation of the Summer Olympics.

Meaning the involvement of the insurance industry and further according to the size of the event the re-insurance companies as well. The involvement of re-insurance companies is not direct but is always impactful to make situations stable.

Courtesy of MBE BLOG



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