Could there be a insurance company default because of the Coronavirus?

  • Thread starter Thread starter morganist
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morganist said:
What about the cost of insurance payouts for people who have been put out of work from the lockdown and lost other things as a result of the lockdown that are covered by insurance? Surely there would have been massive insurance claims to cover the cost of the lockdown, the longer it goes on for even at reduce rates the greater the impact on the insurance industry. Then there is the risk of a second and third wave of the virus and the future payout liability the insurance industry will face.
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Don't know that specific, tho banks, when providing a loan, for extra payment, provides insurance in case one loses a job and is unable to pay out.

But then. Payments were stoped with gov permission & banks gets those bailouts anyways.

I think there's more problems with insurence who dealt with wild fires and etc.

A guess like random shooting in the dark.
 
wrbtrader said:
So you think insurance companies are going to do better overall ?
wrbtrader
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I don't know. First it was just a strategic guess + heard a person, who has 15k ins agents, tellin that they did well durin covi.

wrbtrader said:
I now see a ton of lawsuits happening about payout liability...maybe even class action lawsuits 5 - 10 years from now.

wrbtrader
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Reminds of folks suing CCP over covi.
And with expectancy of profitable outcome.

Word.

Only time wasted via thought process and if real action taken.
 
wrbtrader said:
So you think insurance companies are going to do better overall ?

I remember getting private disability insurance back in 2014...a pain in the butt.

It payed off when I almost died in the fall of 2016 that resulted in hospitalization for many months including extensive therapy in 2017. Still insured by them today and can't imagine how they would treat someone that had a preexisting medical condition because of Covid-19.

I now see a ton of lawsuits happening about payout liability...maybe even class action lawsuits 5 - 10 years from now.

wrbtrader
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So you see just having covid even if someone survives it as an insurance premium price increasing factor? Wouldn't it be a sign that they can fight the virus and survive instead?
 
morganist said:
So you see just having covid even if someone survives it as an insurance premium price increasing factor? Wouldn't it be a sign that they can fight the virus and survive instead?
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Excellent questions...

I just see a lot of angry people that survived Covid-19 and going through a lockdown to then fight back against any increase in their insurance premium or denial of insurance.

wrbtrader
 
wrbtrader said:
Excellent questions...

I just see a lot of angry people that survived Covid-19 and going through a lockdown to then fight back against any increase in their insurance premium or denial of insurance.

wrbtrader
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I was thinking more about the cost of the lockdown and the insurance claims it would cause then the cost to the insurance companies. Even if they don't default they could have their profits cut massively this would impact the stock market if it happened.
 
Insurance companies are going to be fine - safest place in the world for your money is inside of annuties and whole life policies in life insurance companies. Dead bang safe.
 
@morganist Aren't you an economist? You have no idea what a global pandemic's repercussions are? And of all places to ask, you ask on ET.

Talk about the blind leading the blind.
 
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