Life insurance set to suffer Covid-19 mega-blow
The pandemic is to hit the insurance industry twice as hard as the 2008 financial crisis, according to McKinsey
SA’s life insurance industry is likely to suffer a “mega-blow” from Covid-19 that will be twice as bad as the impact of the 2008 global financial crisis, according to a report by McKinsey. While the rest of the insurance sector will be less badly affected, it will take four years before it recovers to pre-pandemic levels.
McKinsey’s modeling indicates that the gross written premiums (GWP) of life insurers are likely to contract by 18% for 2020 and 2021 combined as a perfect storm of poor market returns, reduced customer demand, declining disposable income and distribution disruption hurts the industry. That compares to a 9% decline in GWP for the industry in 2008 in the wake of the global financial crisis...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.