What the pandemic costs insurers

Frankfurt In February gave up allianceCFO Giulio Terzariol still comparatively carefree. Europe’s largest insurer is currently not afraid of high burdens as a result of the spread of the corona virus, the top manager at the time self-confidently declared at the press conference in Munich as a motto. The insurance of companies against business interruptions is usually only effective if the cause is real property damage.

In addition, the alliance does not offer any policies that would cover an epidemic risk. A good one and a half months later, the top man of the Dax 30 group sounds a little more cautious on this issue. The damage for unusual events alone was in the three-digit million range, Terzariol now admitted. But the resistance of the group is very great.

The industry’s initial serenity about the financial consequences of the novel lung disease has vanished. The corona crisis will cost insurers a lot, believes the consulting firm Meyerthole Siems Kohlruss (MSK).

The compromise reached a few days ago in Bavaria with politicians and restaurants over a partial payment for the company closure policies will cost the industry around 300 million euros, estimates MSK Managing Director Onnen Siems. At the beginning of April, all parties agreed to pay ten to 15 percent of the agreed daily policy rates to the restaurateurs concerned if they had to close due to Corona.

Among other things, Allianz, the Versicherungskammer Bayern (VKB) and the liability insurance company, which specializes in the catering industry, agreed to pay damages from the closure of companies. The refusal by a number of insurers to pay damage from the closure of grocery stores, hotels and restaurants due to the Covid 19 virus had previously met with harsh criticism from customers and insurance brokers. But this is not the only area where Corona hurts insurers.

For some, the pandemic is an opportunity

It could also be expensive for legal expenses insurers. Because many customers are likely to step up to the Kadi because of the new special regulations, which include the deferral of rental payments in the event of bottlenecks due to Corona. “According to an initial estimate by Meyerthole Siems Kohlruss, up to 500 million euros in damage can come to the industry,” explains Thomas Budzyn, project manager of the legal protection data pool of the consulting company.

For many insurance companies, Corona is a stress test. The crisis shows the deficits in digitization of many established providers more clearly. After all, thousands of employees currently have to work from home in the home office – if the systems allow it.

The pandemic may be a risk for all insurers, but for some it is an opportunity. The MSK experts predict that there will be divisions that will benefit from the crisis. This could include accident insurance, household contents insurance and the private liability policy. The experts estimate that since many people are hardly allowed to leave the house due to the strict regulations, there will also be less damage. The number of burglaries is likely to decrease significantly, which can already be seen in part from the data from the state criminal police offices.

Car insurers are likely to be among the biggest beneficiaries. The number of accidents has fallen by up to 50 percent since the shutdown. “By the end of April, the industry is likely to save more than a billion euros in claims expenses,” estimates the actuary Onnen Siems. The auto lines of business of the insurers are usually anything but profit machines, which is why many companies are reluctant to pass on the savings.

In the end, however, customers could also benefit a little from the forced trend. Because if the annual mileage drops significantly, the motor vehicle premium can be significantly reduced in November at the latest when changing providers. To do this, however, the car owner must assume that he will drive less in the shadow of Corona in the next twelve months and that his driving performance will remain lower. It is a perspective that many commuters may not be comfortable with.

More: The federal government and credit insurers secure German trade.


The non-life insurance premium rises 14% to Rs 1.73 billion during April-February

Non-life insurance companies reported a 14% increase in premium income to Rs 1.73 trillion during April-February of this financial year, according to data from the Authority for Insurance and Development Authorities of India (Irdai ).

In the same period of 2018-19, as many as 34 non-life insurance companies had grossed a total premium of over 1.52 million crowns.

Data showed that public sector insurance companies recorded an 11% increase in their premium income to Rs 76,369.72 crore during the first 11 months of 2019-20.

The two specialized public sector companies, AIC and ECGC, recorded a 25% jump in deposits at Rs 10,032.72 in the period.

Private sector non-life insurance providers raised an overall premium of Rs 97,072.10 over April-February 2019-20, an increase of 17% a year ago.

Seven self-employed insurers in the private sector recorded a 21.31 percent increase in their total premium income to Rs 12,602.31 crore over the period compared to Rs 9,633.21 crore over the year-ago period.


Bay Area Insurance Fraud Sting Leads to 4 Arrests – NBC Bay Area

An automotive insurance fraud sting operation led to
arrested four people, including three from Contra Costa county, officials said

The undercover sting was conducted by California
Department of Insurance, Contra Costa County District Attorney e
National Insurance Crime Bureau.

In one case, presumably the employees of a workshop
provided undercover officers with falsified written documentation to support fraud
insurance claims.

In another, an undercover officer was trained by the bodywork
workers “in telling a false story to the insurance company, including
allegedly telling the undercover officer to lie about when and how the vehicle
damage occurred, “said California insurance commissioner Ricardo Lara in a
Press release.

The four people arrested for insurance fraud
my name is Estephanie Gonzalez-Marquez, 26 years old, from Pittsburg; Marco Antonio Hernandez Santizo,
49, of San Pablo; Kyle Alan Coburn, 30, from Elk Grove; and Vu Phong Hoang, 33,
by Clayton.

“These suspects brazenly worked to rip insurance
companies filing bogus insurance claims, “said Lara.” We are
tackle the problem of insurance fraud and take proactive measures
educate the public and deliver a dissuasive message to those who consciously break
the law. Insurance fraud is not a victimless crime. “