While the top 10 players in other insurance markets are dominated by life insurers, the same can’t be said in Australia, and an insurance analyst believes this puts the country’s major players in a position that is less exposed to claims related to the coronavirus outbreak.
“The top 10 insurers generate 71% of their business from non-life, while the remaining 29% comes from life,” noted GlobalData insurance analyst Deblina Mitra. “Life insurers are vulnerable due to an expected rise in claims due to COVID-19 and difficult conditions for investment.”
Non-life insurance providers, however, have their own exposures to contend with.
“A fall in retail sales and the resulting bankruptcies put pressure on the trade credit lines,” said Mitra. “The leading trade credit insurers are reported to have stopped issuing new products.”
Property and motor lines, on the other hand, are seeing a decline in claims due to the pandemic-induced prevalence of remote work arrangements.
