The COVID-19 health crisis has turned into an economic crisis that is affecting a broad range of sectors. On 27 March, the IAIS released a statement saying that, while insurers “are exposed on both sides of their balance sheets”, they “are generally well capitalised with sophisticated risk management capabilities, which should help the sector as a whole to withstand the shocks associated with COVID-19”. However, does the same hold true in developing countries?
Our research shows that many insurers in sub-Saharan Africa (SSA) were already vulnerable before the onset of COVID-19 and that the effects of the pandemic will heighten this vulnerability: given decreased net income, investment values (and thus profit) and constant liabilities, more fragile balance sheets mean marginal insurers could be pushed into insolvency. We explored the impact of COVID-19 on digitisation in the insurance sector in our previous webinar – but what other medium- and longer-term effects do we expect to see?
This panel discussion webinar, hosted by Cenfri in partnership with FSD Africa, was moderated by Mia Thom (Cenfri) and featured the following panel of experts: Evans Osano (FSD Africa), Pascale Lamb (A2ii) and Vasish Ramkhalawon.
Following a short presentation, we delved into the following questions: