Zurich has started to see some coronavirus-related Business Interruption claims, but based on its exposures is expecting it to be very manageable in a group context.
George Quinn, Zurich’s Chief Financial Officer, has explained that for these claims to pay out the company not only needs to see exposure to the virus, but also a recognised authority closing down the facility.
Quinn has since questioned the possible viability of such a move, stating if one penalises the insurers at this stage, it raises question marks over longer term coverage for these risks, and who would be prepared to provide it.
Travel insurance claims have by far dominated the volume of claims that Zurich has seen in recent weeks.
However, the absolute value of each claim is reportedly very small, and thus this is not expected to become a significant issue.
In light of the current backdrop, Zurich expects the positive pricing dynamic to remain for some time, and believes this is necessary to combat lower investment returns.