Question

Discuss how Covid 19 has affected and improve insurance companies

Answer 1

Due to COVID-19, Insurance companies are facing new challenges and pressures.
Some of the challenges are:
1. Generally, Pandemics are not covered in insurance poliies and for such coverage, no necessary charges are included to provide. A number of public sector institutes are trying to legislate to forcefully provide insurance coverage by the companies, for business losses and other challenges for claims due to the COVID-19 pandemic.

2. Impact on businesses due to social distancing has led to a drastic decrease in demand for insurance. Low salaried level employees are provided with low-cost based premiums, such as those in compenstion of workers. Increase in layoffs results to lesser people purchasing assets like houses, cars, and other insurable purchases. This drastic decrease in premiums means a drastic decrease in income for insurers.

3. Authorities are forcing insurance companies to receive late premium payments without any late charges or penalty, putting pressure on cash flow. Even though the liquidity is being impacted, insurance companies are still being asked to pay out claims.

Despite being affected in few areas like discussed, when it comes to online and digital marketing, the demand for health insurance has raised drastically. Workers preferring work from home, who use internet most of time are one of the most targeted customers when it comes to online marketing.