How COVID Alters Claims Patterns
Claims trends and risk exposures are likely to evolve in both the mid- and long-term as a result of the COVID-19 pandemic.
With the reduction in economic activity during lockdown phases, traditional property and liability claims have been subdued, most notably in the aviation and cargo sector, but also in many other industries, with fewer accidents at work, on the roads and in public spaces, according to a new report COVID-19 — Changing Claims Patterns from Allianz Global Corporate & Specialty (AGCS).
Estimates vary, but the insurance industry is currently expected to pay claims related to the pandemic of as much as $110 billion in 2020, according to Lloyds.
AGCS alone has reserved about €488 million ($571 million) for expected COVID-19 claims, especially for the cancellation of live events and the disruption of movie or film productions in the entertainment industry.