As the COVID-19 situation is changing on a daily basis, the impact to the insurance and reinsurance markets is not yet fully known. As outlooks on the pandemic evolve, the (re)insurance industry remains at the forefront of conversations to create a forward-looking solution for pandemic risk in conjunction with policyholders, insurance markets and key policymakers.
The first half of 2020 was marked by the emergence of COVID-19 and its rapid global spread. Countries navigated their way through initial suppression and in recent weeks, tentative reopening. Early questions revolved around potential scenarios – three months, six months, and beyond. As Guy Carpenter-affiliate Oliver Wyman described in May (The Long Haul), the long haul of suppression is now underway as the virus becomes endemic, flaring periodically in various geographies. The virus could be eradicated with the invention and global distribution of an effective vaccine, a cure or a therapeutic solution that drastically reduces the burden of the disease; eradication of the virus may also be aided by rising herd immunity if natural infection confers protection for significant enough periods.
Questions now revolve around a longer time frame – what does the rest of the year look like? How do people return to work and school and manage economic activity while co-existing with the virus? In the article linked below, Oliver Wyman lays out their perspective on these key questions.
Contributors to the article include Oliver Wyman Partners Helen Leis, Health & Life Sciences, Ugur Koyluoglu, Vice Chairman, Financial Services, Americas and Barrie Wilkinson, Co-Lead of Digital Transformation, EMEA, among others.
Guy Carpenter is fortunate to be able to bring the power of Marsh & McLennan Companies to bear through this process by working closing with Oliver Wyman to understand the impact on the primary market and wider financial system. Marsh & McLennan Companies is at the forefront of conversations to create a forward-looking (re)insurance solution for pandemic risk in conjunction with policyholders, insurance markets and key policymakers.