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Impact of COVID-19 on the Indian Insurance Sector

  • Indian insurance sector is generally equipped to handle key loss events including pandemics. However the financial consequences will require time and will be made explicit by the insurer. Insurance companies are responding to the COVID-19 pandemic on several fronts. Each individual has its own particular challenge, not just for insurance but for the whole of the economy and for the public. IMPACT OF COVID 19 ON EDUCATION IN INDIA

    A year which could have been an astounding year for the Indian insurance sector in terms of premium growth is abruptly staring at a state where harmonizing the last year's figure seems an intimidating challenge. The industry's peak collection months have traditionally been the three most recent financial years.

    Due to the lockdown taking place in the final week of April, premium collections are now beginning to suffer. The effect is huge because of the lockdown in most cities. Customers are not purchasing travel insurance because they have been unable to fly. Purchasing new policies where insurers need to take up medical tests are consuming time and has a delay. NRIs, as well as those who have a track record of traveling, are no longer eligible to apply for new policies. Overall, the insurance sector has been hurt in many different directions.

    Insurers are facing an increased risk of death due to loss of new business and premiums. The government is positive and has ordered a total lockdown lasting 21 days even though the death toll was rising to double-digits. But, it is impossible to take for granted the early signs and size of the country that show evidence of community spread. Insurance agencies believe it is too early to comment on an exponential increase in death claims in life insurance. India should be able to control the spread. If not, it could have a less severe impact on claims for life insurance. If you talk about life insurance policies, many organizations will continue to honor existing claims. In turn, future policies will have higher rates and more comprehensive coverage. IMPACT OF COVID 19