The current strain of the mosquito-borne Zika virus is just weeks old, but has already claimed a rarified place among global health crises.
Last week, the World Health Organization declared the virus an international public health emergency – a declaration it has only made three times before. In its announcement, WHO called on the global community to fight the disease and develop a vaccine that would cure the mild fever, skin rash and conjunctivitis.
Zika has been reported in 28 countries, according to the US Centers for Disease Control and Prevention, and WHO has associated the virus with microcephaly in mothers who become infected while pregnant.
While the virus has already impacted the world of travel insurance – several outlets are reporting an increase in policy inquiries – less has been said about health or property/casualty insurance companies.
However, there are some signs that while carriers have not yet factored Zika into their underwriting operations, they are keeping a close eye on the development of the disease.
“We are in contact with the Centers for Disease Control, US federal agencies, state and local health departments, healthcare providers and others so that we can provide timely, relevant and accurate information to our members and customers,” an Aetna Inc. spokesperson said. “Additionally, we have distributed health information from the CDC to our disease management and case management teams to help support our members.”
The spokesperson added that it is “premature” to predict healthcare costs associated with the virus.
Other health insurers, including Anthem Inc. and UnitedHealth Group, have issued warnings to policyholders on the virus but have not commented further.
On the property/casualty side, even less has been said. If past events involving major health crises are any guide, the greatest effects here will be on business interruption and workers’ compensation policies.
When the Ebola virus gripped much of the world in 2014, several carriers released Ebola-specific products that provided for business interruption coverage in the case of an outbreak. Because traditional policies require a physical event to trigger coverage, these policies filled a perceived gap in the market.
Meanwhile, workers’ comp, as well as general liability, medical malpractice and directors & officers liability, were also in play among healthcare workers, and may be again if the Zika virus spreads to the US.
However, considering the insurance landscape of the most heavily hit countries, impact may be minimal.
