International P&C insurance news: September 2020
Here is a round-up of recent international insurance news from India, the U.K., Portugal, and more.
Editor’s Note: Here is a round-up of recent property & casualty insurance news from outside the U.S.
India’s motor insurance business is expected to shrink by 27.2% in 2020 and its general insurance business will decline by 9%, according to research from GlobalData. The forecast is a steep decline from the about 10% growth both segments experienced in 2019.
AXA SA is considering a sale of its Greek operations to Italian insurer Assicurazioni Generali SpA, Bloomberg reported. People familiar with the potential deal estimate AXA’s Greek business, which offers life and general insurance products, to be valued at approximately 150 million euros ($177 million). The French insurer also is reportedly considering a sale of its Singapore unit, said Bloomberg. In 2019, AXA”s Singapore business generated 615 million euros ($723 million) in revenue.
Global economic resilience is predicted to weaken by nearly 20% due to the coronavirus, says Swiss Re Institute’s annual Macroeconomic Resilience Index. The index shows that many countries’ fiscal and monetary headroom has depleted during the pandemic, with the U.K., Japan, and the U.S. possibly seeing the most impact.
Swiss Re also expects price increases across all of its business segments as catastrophes, such as hurricane, drive insurance coverage demand. “Even before the COVID-19 crisis, most major markets were operating at below-average profitability,” Moses Ojeisekhoba, the company’s head of reinsurance, said in the statement. “To be able to address the growing need for insurance protection in a sustainable way, further price increases across all lines of business are clearly needed.”
The U.K.’s “Eat Out to Help Out” program may cost the government more than 500 million pounds ($660 million), Bloomberg reported. The initiative to help get customers back into restaurants pays for 50% of the cost of meals eaten in restaurants, up to a maximum of 10 pounds, every Monday, Tuesday, and Wednesday. During the program’s first three weeks of implementation in August, more than 64 million claims were filed, according to Bloomberg.
Portugal launched a new travel insurance program providing COVID-19-related coverage. The Portugal Travel Insurance program, which is backed by Portuguese travel insurer RNA Assistance Insurance, will reportedly cover surgical, pharmaceutical and hospital expenses associated with COVID-19 throughout the country.
AXA Hong Kong is extending “Cleaning and Sanitising Benefits” to home insurance policyholders until October 31, 2020, the insurer said in a press release. The coverage will reimburse home cleaning and sanitizing expenses up to HKD1,500 (approx. $193) if an individual living at an insured address tests positive for the virus.
Lebanon’s Caretaker Economy Minister Raoul Nehme said 2,500 insurance claims in connection with the Beirut port explosion have been filed as of August 17. The claims total $425 million thus far. Munich Re, alone, said it has experienced at least 100 million euros ($118 million) in losses related to the blast.
Spanish travel insurance carrier InterMundial is now offering COVID-19 PCR antibody tests as an add-on to its policies. According to GlobalData, some insurers have begun offering PCR antibody test benefits, which allow for the insurers to issue “Fit to Fly” certificates if a policyholder tests negative.
The Australian auto insurance market is expected to decline by 4.4% in 2020 due to COVID-19, reports GlobalData.
Tesla reportedly formed an insurance brokerage with a registered capital of 50 million yuan ($7.2 million) in Shanghai’s Pilot Free Trade Zone, according to China’s National Enterprise Credit Information Publicity System. The electric carmaker’s Gigafactory 3 factory also is located in the region. Additional details about the China venture are unknown.
Japan’s general insurance industry is expected to contract by 0.9% this year, down from the 1.7% growth witnessed in 2019, says GlobalData.