The management consulting firm warns of a coming trade-off between maintaining the economic integrity of the business and maintaining customer trust, as it outlines how European insurers can manage the impact of coronavirus.
Oliver Wyman’s insurance team has warned that insurers will need to “carefully consider” how they handle business interruption claims in relation to Covid-19.
The management consulting firm admitted that there is wide expectation that claims in this area may be limited as most businesses are not covered for pandemic risks and many policies require infectious conditions to be named.
However, it added: “There is increasing pressure in many countries from governments, regulators, industry bodies, and consumer groups for claims related to business continuity to be covered under exceptional conditions.
“Insurers will need to consider carefully their positions here, as there will be a trade-off between maintaining the economic integrity of the business as defined by the terms and conditions, and maintaining customer trust, and hence lifetime value.”
Scrutiny
Oliver Wyman further predicted that the implicit…
