The societal, operational and human costs associated with COVID-19 are prominent in our thoughts, discussions and efforts, including Guy Carpenter’s work with clients. While these costs are undoubtedly high, health insurers and reinsurers are also closely monitoring the direct and indirect financial impact of the virus. The growing use of telemedicine and capacity constraints within our healthcare system will potentially dull utilization increases; however, the financial costs will still be significant.
The COVID-19 pandemic has quickly grown from one concern among many to a dominant near-term societal issue. This situation accelerated so quickly and has taken so many by surprise. It’s now difficult to step back from the hour-by-hour, minute-by-minute reaction to the latest developments and plan for what needs may arise in a week, a month, or three months, according to Oliver Wyman Health & Life Sciences Partners Deirdre Baggot, PhD, RN, Bruce Hamory, MD and Chief Medical Officer, and Principal John Rudoy, PhD. Oliver Wyman is an affiliate of Guy Carpenter.
As companies assess how to deal with ongoing risks while simultaneously planning for more distant ones, the reinsurance industry is well positioned to advise executives on how to craft solutions to both short and long-tail concerns.
Frontline healthcare workers are heroically managing whatever comes, and now it’s senior leadership’s job — including board members — to make sure workers have what they need in the coming weeks and months to effectively serve patients and ultimately mitigate the effects of this pandemic.
Guy Carpenter has been developing a view of how COVID-19 may impact the medical (re)insurance market.