THE major players in Jamaica’s life insurance industry say they stand prepared to deal with any large volume of claims due to the COVID-19 pandemic and are confident that the financial structures of their companies will not be undermined.
So far, Jamaica has had seven COVID-19-related deaths, and should the community transmission of the highly contagious virus sweep across the island, more deaths may occur. That could mean an increase in claims from families of insured individuals.
Globally, insurance companies have been reallocating funds, adjusting their offerings and, in instances, waiving fees as they grapple with the impact of the seemingly unstoppable virus.
On Friday, Businesswire reported that insurers in a number of countries have already started taking the necessary action for protecting their businesses, leaving many consumers in the lurch as they are now finding out that most insurance policies do not cover pandemics.
Additionally, the threat of a recession, as well as a growing number of insolvencies have placed the insurance industry under severe pressure.
Earlier this month Fitch Ratings agency, in an analysis of the impact that the coronavirus will have on the insurance industry, noted that there will be increased health insurance claims to cover hospitalisations for people who are infected by COVID- 19, or life insurance claims for death.
Leave A Comment