MILAN, March 2 (Class Editori) -- The insurance sector is acting to face coronavirus with its own weapons. Thanks to a post on its LinkedIn page, Generali has announced during the last days that Generali China Insurance has developed a policy against COVID-19, in order to protect SMEs employees who are working in the Asian country. This policy has been developed in 72 hours and, according to MF-Milano Finanza, the Lion would be ready to launch a similar initiative also in Italy, in order to protect households, professionals and companies, by offering them medical consultation, refunds in the event of hospitalization and indemnity for activity interruptions. During the last days, the Chinese province of Hainan has also submitted a policy developed thanks to the collaboration of 12 companies, such as China Pacific Insurance and Ping An Insurance, in order to offer an insurance cover to enterprises which have been damaged by the epidemic; in Thailand, the company TQM, in collaboration with Bangkok Insurance, has presented a solution which provides for compensations to customers who have been affected by the virus. Surely, companies have made their calculations to be able to offer insurance covers without suffering from any losses: a phenomenon which, due to cancelled journeys and events, affected people and deaths, may have a significant impact on the economy.
It is difficult to say how much of these costs could be covered by insurances. The Asian Development Bank has calculated that in 2003 SARS virus damaged the Asian economy for a total amount of 16 billion U.S. dollars and only in Hong Kong the price for insurances amounted at about 5 billion U.S. dollars. In the case of coronavirus, it is too early to make forecasts, however it is clear that in Italy, a country where the insurance covers in the damage field are not so widespread, people and enterprises are risking to pay the virus effects by themselves. "Even though insurance covers able to provide protection against emergencies such as COVID-19 have already been available on the market", as Andrea Parisi- CEO and General Manager of AON SpA, global leader in the insurance brokerage and consultancy for risk management industry- has underlined.
Companies in the tourism sector have been the most affected ones. EasyJet and British Airways have announced the flight stop to Northern Italy, while Trenitalia has decided to refund customers who have bought tickets until February 23. A stop to movements, which has caused the cancellation of all forecasted events, from business travels to conventions, as well as Salone del Mobile of Milan, postponed to June, or the Motor Show of Geneva, closed because of coronavirus.
The damages' estimate can only take place in the next months, but "there are insurance policies which provide for the refund of cancelled events due to epidemics", as Parisi has explained. "For example, we provided that on the occasion of Expo Milan 2015, as we were brokers of the event".
There are also insurance policies on the market, which provide for refunds due to the cancellation of activities because of events such as COVID-19. However, "these policies are not so widespread in Italy", Parisi has added, by recalling that, even if in Italy many earthquakes occur, "only very few companies and only 5 percent of the households have an insurance policy covering earthquake-related risks."
As far as damages to people is concerned, healthcare policies or life insurance policies generally provide for refunds due to diseases, including epidemics, also in the event of journeys. "There are many companies which provide for refunds because of cancellations", Paris has explained. The feeling, according to AON's privileged point of view, is that Italian companies are currently not so protected against coronavirus, but are surely ready to evaluate new offers.
(Source:Class Editori)
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