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Covid-19 Pandemic:World’s top 100 most valuable insurers could lose $100bn in brand value

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.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.

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Covid-19 Pandemic:Life insurers’ lose 33% of their new prm income, 63% of policy sales in Apr FY 2020-21

According to an analysis by Kotak Institutional  Equities, “Private life insurance players reported 40 per cent  yoy decline in individual APE in April 2020 despite the lockdown during the entire month, which  is better than our expectations of about 90-95 per cent  decline. Demand for protection policies and spillover from year-end pipeline were the likely drivers.’’

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SBI Life’s PAT grows by 7% to Rs1,420 crore in FY 2020

Value of New Business (VoNB) for the life insurer increased by 17 per cent to Rs 2,100 crore in FY 2020. Value of New Business ( VoNB) margin of the company increased from 19.8 per cent in FY 2019 to 20.7 per cent in FY 2020 (with effective tax rate). There has been a 102 bps increase in VoNB margin to 18.7 per cent.

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Quarterly global InsurTech fundraising trend slashed by over 50%, COVID-19 a likely culprit:Willis Towers Watson

InsurTechs raised a total of US$912 million during the first three months of 2020.Deal count, at 96, was up 28% over Q4 2019, 10% more than the first quarter of that year. It is the highest number of investment rounds by transactional volume ever recorded by the Quarterly InsurTech Briefing.Overall total funding was down by 54 percent,  however, reflecting in part far fewer ‘mega-deals’ (US$100 million-plus deals) taking place in the year so far.

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Tens or 100s of billions? Insurers consult crystal balls on coronavirus costs

Losses could exceed $500 billion if state lawmakers require insurers to cover business-interruption claims for pandemic losses, former CNA Financial Corp Chief Executive Dennis Chookaszian told Reuters. Most policies exclude that risk, but insurers are facing lawsuits over it and eight U.S. states are considering laws to retroactively make insurers pay such claims.

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Covid-19 Pandemic:US life insurance claims may touch $7.2 bn

The estimate includes costs for policyholders between the ages of 56 and 74, which are projected to reach as much as a combined $4.1 billion for individual and group plans, the researcher said in a study released Thursday. Life insurers are in good shape and should be able to manage surging costs, according to the report’s author, Samantha Chow.

Individual policies would account for 81% of claims, while group plans such as those offered by employers would make up the rest, the Aite study found. Insurers’ main challenge will be how to handle claims as economic hardship spreads, Chow said.

“The biggest issue is going to be that these beneficiaries that are calling after losing a loved one who might have passed as a result of Covid-19 — they’ve incurred a lot of health-care costs,” she said. “They might need the money really quickly in order to survive.”

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In an all-cash deal,Axis Bank to acquire 29% of Max Life Insurance

 Deal marks coming together of 3rd largest private bank and 4th largest private life insurer
 Strategic transaction to strengthen the franchise and bring long term orientation to the
relationship
 Axis Bank to own 30% stake in Max Life post transaction closure
 Max Life to include Axis Bank logo in its brand tag line to demonstrate the close knit partnership

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