The numerous advancements that took place within the insurance industry during 2019 contributed towards the establishment of a more competitive, coherent, regulated and transparent environment for insurers operating in the country, showcasing a clear path towards growth given the low penetration levels of both general and life insurance businesses showing positive trends within the country. However, traditional insurance mainly provides for the financial impact of risk. Taking a look at the risks that came into light in 2019 and early 2020, it is evident that there will be more considerations given to the list of impacts related to risk.
“The impact of COVID-19 will affect the short as well as the long-term financial outlook of insurers. The pandemic will not only reduce global growth but have an impact on equity and debt instrument pricing and also reduce insurable exposures due to negative impact on businesses.” – Suren Rajakarier (Partner, Head of Audit and Insurance)