The outbreak of COVID-19 shook the very foundation of many industries. It is probably the first time that a pandemic created a dent in the world economy. Statista estimates that COVID-19 will bring down the global real GDP growth by 0.5 percent in 2020 compared to the previous year.
Consumers have become conscious of their expenditure. Due to disruptions in supply chains, many small and medium businesses have suffered huge losses. A dip in international trade has created a ripple effect across all industries including travel, hospitality, insurance, and manufacturing.
The pandemic has different effects on the life and non-life segments of Insurance. While the rising concern for health has led to a spike in life and health insurance demands, the general insurance sector is suffering a setback due to restrained expenditure.
Motor insurance is no different from being severely hit by the pandemic. Amidst this crisis, people are not keen on purchasing cars, bikes, which is directly affecting the insurance sector as well. Re-negotiation on premiums is another big challenge for Insurers. Let’s delve deeper into the impact of Covid-19 on motor insurance and practical challenges