Global insurers are now being threatened with coronavirus from two directions – a sharp increase in payouts and at the same time, significant investment losses.
While initially a low level of claims was expected because epidemics are excluded from many business insurance policies, a recession that might be in the cards for the global economy puts companies with trade credit insurance, including airlines and retailers, under strain. This is happening alongside added pressure on insurers’ investments, which comprise around US$20 trillion in assets alongside problematic big government bond holdings, according to Reuters.
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