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Coronavirus BI exposure remains “very manageable”, says Zurich CFO

19th March 2020 - Author: Charlie Wood

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 QuinnGeorge 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.

This comes as Bill A-3844, which would have required BI policies to cover losses caused by the COVID-19 outbreak at certain businesses in New Jersey, was stopped from passing into law.

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.

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