Impact of covid outbreak on insurance industry

Raxit Soni

Agenda

1. Definition

2. Changes in Regulation

3. Is Covid-19 Insurable

4. Planning & Managing Pandemics

5. What is claimable if one is a Covid-19 victim

6. Pru Cares by Prudential

7. Q&A

CORONAVIRUS

COVID-19 is a disease caused by a new strain of coronavirus. 'CO' stands for corona, 'VI' for virus, and 'D' for disease.

Coronaviruses are a large family of viruses that are known to cause illness ranging from the common cold to more severe diseases such as Middle East Respiratory Syndrome (MERS) and Severe Acute Respiratory Syndrome (SARS). 1

HAS REGULATION CHANGED IN RESPONSE TO COVID-19?

• Communication with clients regarding the scope of their covers in relation to covid-19.

• Quick claims processing.

• Flexible premium payment arrangements.

• Allowing for delays in claims notification.

• Prohibit revision of policy terms for the existing and new clients.

Emphasis on Customer Protection

• Ensure insurers have adequate capital to honour their promises.

Emphasis on Solvency of Insurance Provider

• Having personnel within the firm responsible for business continuity.

• Moving of service provision to online platforms, including underwriting and claim notifications.

• Support of staff and agents working offline.

Emphasis on Business

Continuity

IS COVID-19 INSURABLE?

• The Covid-19 outbreak has been defined as a pandemic by the World Health Organisation (WHO). A pandemic is characterised by:

• spreading quickly; and

• affecting many individuals in different geographical areas.

• Dependent on the cover provided by one’s insurer.

• Some policies cover pandemics whereas others do not.

• Confirm with one’s insurer to determine whether Covid-19 is treated as a pandemic by the insurer and the implication of this on one’s coverage.

PLANNING & MANAGING PANDEMICS

a) Insurance Sector

• Risk assessments should be carried out to estimate the impact of potential pandemics and the likelihood of service disruptions in the industry.

• The industry players should assess their capacity to mitigate the extent of disruptions, financial losses, human resource losses that may result.

• Education, awareness and communication– Industry regulators and industry players should ensure they are aware of potential pandemics and communicate to the relevant stakeholders.

b) Business Enterprises

• Business continuity plans should be developed to mitigate the potential impact of the on services.

• Business impact analysis should be periodically carried out. This will assist in identifying the potentially affected processes and quantify the impact.

• Regular training to staff and stakeholders on potential pandemics illustrating ways to manage the pandemics.

c) Individuals

• Practise proper hygiene.

• Save for and/or take out insurance against unforeseen events like pandemics.

• Stay informed on events around the world.

What to claim for if you are a Covid-19 victim & your policy does not treat Covid-19 as an

exclusion…….

- A benefit is payable on the individual dying due to covid-19.

- A benefit is payable if Covid-

19 results in temporary

incapacitation of an individual

GROUP LIFE

A benefit is payable on the individual dying due to covid-19.

LAST EXPENSE

This will reimburse the

individual all or part of the expenses

incurred in seeking

treatment related to covid-

19.

MEDICAL INSURANCE

What to claim for if you are a Covid-19 victim & a Prudential customer……

Death Cover

A benefit is payable on the individual dying

due to covid-19.

Temporary and Total Disability

A benefit is payable if Covid-19 results in

temporary incapacitation of an

individual.

Hospitalisation Cover

A FREE Kshs 2500 per day benefit is payable on the individual being

hospitalized due to covid-19 for up to 30

days.

A FREE Kshs 5,000 per day benefit is payable on the individual going into ICU due to Covid -

19

This can be paid as a lumpsum or as a daily

benefit.

Diagnosis Cover

A FREE Kshs 10,000 benefit becomes payable on the

positive diagnosis of covid-19.

Quarantine Cover

A FREE Kshs 2,500 benefit is payable on

the individual going on quarantine due to

covid-19.

This can be paid as a lumpsum or as a daily

benefit.

N.B.: Prudential is licensed as a life insurance company & does not provide medical insurance

WHAT IS PRUDENTIAL’S RESPONSE TO

COVID-19?Pru Cares

a) What is Pru Cares?

• Pru Cares is a free cover offered by Prudential.

• It provides insurance protection to customers and members of the public to help with costs that may arise due to Covid-19.

b) Why Pru Cares?

• The Covid-19 pandemic has created a tough time for everyone around the world, physically, financially, socially and psychologically.

• The Pru Cares cover is Prudential’s way to help fight the pandemic by providing financial assistance to the customers and members of the public who may be affected by Covid-19.

WHAT IS PRUDENTIAL’S RESPONSE TO COVID-19? PruCares

Pru Cares Benefits

Diagnosis Benefit

• Kshs 10,000

• Payable on positive diagnosis of Covid-19.

• Available to:

a) Prudential customers.

b) Members of the general public who enroll for the cover though Prudential website.

Quarantine Benefit

• Kshs 2,500 per day.

• Payable on quarantine in a government facility.

• Available to Prudential customers.

Hospitalization Benefit

• Kshs 2,500 per day if admitted in the general ward.

• Kshs 5,000 per day if admitted in the intensive care unit (ICU).

• Available to Prudential customers.