Recent experiences following the lockdown of public life and the business world in many countries have been a wake-up call regarding the staggering potential for systemic risks to result in losses that subsequently trigger many different repercussions. Yet it is by definition impossible to insure risks that lead to losses everywhere at the same time, thus violating the fundamental criterion of insurability, said Munich Re.

Interest rates have dropped to record lows once again in 2020. Against the backdrop of the coronavirus crisis, it is increasingly likely that the current interest-rate environment will continue to affect low-risk investments for the foreseeable future. These circumstances mean that sustained profits, in long-tail business and elsewhere, will only be possible if prices match the assumed risks, explained Munich Re..

AstraZeneca COVID-19 vaccine trial volunteer has died, Brazil health authority says

Oct 21, 2020

The regulator said testing of the vaccine would continue after the volunteer’s death. It provided no further details, citing medical confidentiality of those involved in trials.

The Federal University of Sao Paulo, which is helping coordinate phase 3 clinical trials in Brazil, separately said that the volunteer was Brazilian but did not say where the person lived.

Europe’s hospitals under major stress as coronavirus cases surge

Oct 21, 2020

The ECDC said that some 19% of patients diagnosed with COVID-19 are estimated to have ended up in hospital and 8% of those could require intensive care, but variations are wide both across Europe and within individual countries.

IMF cuts Asia’s growth forecast, warns of pandemic-driven risks

Oct 21, 2020

India’s economy is likely to shrink 10.3% this year in stark contrast to China, which is set to expand 1.9%, the IMF said.

Asia’s economy is likely to grow 6.9% in 2021 thanks to the boost from expected stronger recoveries in China, the United States and the euro area, it said.

But the IMF said there were “considerable” risks such as the chance of a second wave of infections, escalating U.S. tensions and a potential return to tighter financial conditions.

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