London:
The world’s top 100 most valuable insurance brands, except Chinese giant Ping An, could lose faces a potential 20 per cent loss in brand value amounting to as much as $100bn (£81bn) in brand value as a result of the Covid-19 crisis, according to a report by Brand Finance.
At the time of Covid-19 Pandemic, insurance firms damaged both financially and reputationally, as they face a surge in coronavirus-related claims and risk angering customers if they refuse to pay out.
Ping An has seen its brand value rising by 20 per cent to $60.6bn.
Chinese brands make up half of the top 10 insurance companies, while Allianz and Axa also rank among the most valuable firms.
“The Covid-19 pandemic is going to hit the insurance sector hard – Brand Finance has predicted that insurance brands could face up to a 20 per cent drop in brand value and undoubtedly, we are going to witness revenue slowdown for all brands across the sector,” said Brand Finance chief executive David Haigh.
“Some brands should, however, fare better in terms of their margins, including the property and casualty insurance brands, as fewer such claims are expected during the far-reaching and ongoing lockdown period.”
However, the world’s 500 most valuable non-insurance brands could face a hit of roughly $1 trillion as a result of the coronavirus outbreak.
Airlines, retailers and restaurants were among the sectors considered most at risk as a result of the pandemic and could face a loss in brand value of up to 20 per cent, according to the report.
On the other hand, food brands, household products, telecoms and utilities were all expected to be largely unaffected by the crisis.