Lee discussed the trends that have negatively impacted the
“In the overall industry, net income dropped by 40% last year mainly because of increasing claims in the long-term and automobile insurance lines, which are the two major business lines in
Lee also addressed how non-life insurers are holding up against the pandemic.
“In South Korea, AM Best expects the impact of COVID-19 on the non-life insurers’ underwriting side to be minimal. Sales have been and will be inevitably disrupted for a while, especially in the face-to-face sales channels. AM Best did not see much decline in new business in the first quarter, but does expect to see an impact in the second quarter. Additionally, the impact on the overall top-line for premium income will not be material because of the large, recurring premium base of the long-term insurance line.”
To access the related market segment report, titled, “Market Segment Outlook:
- Insurers Brace for ‘Above Normal’ Hurricane Season, Less Data for Forecasts:
Tom Varney, ARC regional manager, Allianz Global Corporate & Specialty, and Marla Schwartz Pourrabbani, national catastrophe specialist, Swiss Re, discuss the 2020 hurricane season, saying that with commercial flights grounded due to the pandemic, forecasters will have less data for predictions: http://www.ambest.com/v.asp?v=hurricaneseason620.
- Fewer Claims Than Expected Mute COVID-19 Impact on Health Insurers’ First-Quarter Earnings:
Sally Rosen, senior director, and Joe Zazzera, director, both of AM Best, said more patients recovering at home resulted in lower-than-expected health insurance claims: http://www.ambest.com/v.asp?v=ambhealth620.
- California Earthquake Authority Managing
$21 BillionWildfire Backstop for Utilities: Glenn Pomeroy, chief executive officer, California Earthquake Authority(CEA), a nonprofit, said CEA is now managing a $21 billion Wildfire Fundbackstop for utilities: http://www.ambest.com/v.asp?v=pomeroy620.
- COVID-19 Pandemic Struck MPL Market at ‘Weakest Point’ in Two Decades: At the State of the Medical Professional Liability Market webinar, participants discussed the implications of the pandemic hitting the market following a combined ratio of 113.3 in 2019: http://www.ambest.com/v.asp?v=mplirecut620.
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