Review of effects of Covid-19 on insurance

Abstract

Although there is a growing volume of research on the consequences of the COVID-19 pandemic, an in-depth study that explicitly looks at these implications from an actuarial viewpoint is still needed. Such studies can advance our knowledge of how flexible the insurance sector is during major global crises. The COVID-19 virus is a devastating illness that has spread fast over the world, impacting people in a variety of ways (Khan et al., 2020). Apart from having a significant impact on people's health and rising death rates, it also had a significant impact on the economy owing to lockdowns and the shutdown of enterprises globally (Mofijur et al., 2021). Change is nothing new for the insurance sector. It is fair to predict that the repercussions of the 2020 worldwide pandemic will affect the sector, given the numerous historical occurrences and unanticipated losses that prompted these changes. Businesses are struggling as a result of governmental regulations that prevent some from operating at full capacity while forcing others to shut down altogether, resulting in revenue losses (Robinson, 2020). Most of the time, individuals look to the insurance sector and governments throughout the world as their sources of hope in order to be saved from complete devastation. However, the pandemic has overburdened several governments and financially crippled certain insurance companies due to the rapid growth in cases of infection which appears higher than the recovery of affected persons (Babuna et al., 2020). The COVID-19 epidemic has had profound and complicated impacts on the insurance sector (Thorburn et al., 2020).