Insurers Should Act Now To Guard Against COVID-19 Claims
The pundits will debate whether government delays enabled the coronavirus to spread so widely. Perhaps experts and politicians failed to implement earlier, less onerous measures that could have slowed its spread and lessened its impact because the eventual scope seemed unimaginable to them. It was only after the pandemic was well underway that decision makers acted with great urgency — too late to avoid crisis and hardship.
There is a similar lesson for insurers and reinsurers: the potential for an unprecedented avalanche of COVID-19 insurance claims is clear, and the industry can and should take steps now, without waiting for specific claims and losses, to blunt the impact of the wave of claims and lawsuits that has already begun and is rapidly expanding.
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