As the hurricane called COVID-19 pandemic swept across the globe in early January 2020, it left a trail of destruction both in human terms and economic terms. Many people have lost their loved ones; some companies that closed during the first lockdown never opened their doors again.
The pandemic has had short-term and long-term effects on the economy. Perhaps, the sector that has been caught in the eye of the storm is the insurance sector, especially the life sector. This is debatable, but on analysis, this seems to be a fair conclusion without empirical evidence. Consider the first quarter of 2020, with the share prices of companies tumbling on the major stock markets across the world, governments slashing interest rates to almost zero. Remember life insurers are mandated to invest in mostly high-grade investment bonds especially government-issued bonds which were earning almost zero interest rates.
Added to the carnage on the capital markets, is the risk of increased claims. Surely, the life and funeral sectors of the insurance industry have been under severe pressure. How do they manage such risks? With vaccines being rolled out showing evidence that they reduce mortality; shall they implement a COVID vaccination policy whereby your vaccination status determines your premiums or actually if you are not vaccinated, then they will not cover you? Such measures may seem drastic, desperate, and controversial, but who knows where we are going with this pandemic.
To find answers to some of these questions, GN radio interviewed an executive of one the leading insurance companies focusing on the African diaspora communities, Diaspora Insurance. Mind you, the black minorities have been disproportionately affected by the pandemic. To get the full content of the interview, please click the link:
