The different major elements of life insurance products will be affected in different ways due to the ongoing pandemic
The novel coronavirus aka COVID-19 was initially reported as an emerging viral pathogen in December 2019, in the city of Wuhan, China. Later, the virus strengthened its grip and start spreading across the entire globe which led to the creation of a serious health issue.
Finally, after observing and analyzing the entire scenario the World health organization (WHO) declared the novel coronavirus as a pandemic considering the possibility that it is most likely to affect a large number of populations than expected initially.
In order to prevent the spread of the deadly pathogen most of the countries declared a state of lockdown, which permitted only essential services to continue, and everything else was shut down. European countries namely Italy, France, Germany, Spain, and the UK were some of the most harshly affected countries by the pandemic. In the later months, the United States witnessed a sudden rise in the number of COVID-19 cases and surpasses all other countries being the hardest-hit country.
The novel coronavirus has not just impacted mankind in terms of health and lives but also adversely affected trades, businesses, and economies worldwide. After the imposition of lockdown, most of the thriving industries and line-ups of businesses that were not counted as essential were put to a halt to contain the spread of this virus. This temporary halt has affected millions of people across the world resulting in a state of global economic disbalance.
The insurance sector is also hard hit by the pandemic considering which the UAE insurance authority has issued a circular (2020 of no.3). The circular clearly describes the set of precautions and measures insurance providers are supposed to take during the current outbreak. In this article we analyze and understand how the novel coronavirus has affected the insurance sector in the UAE.
An overview of the Impact of COVID-19 on Insurance Sector