The onset of the coronavirus pandemic and the ensuing health and economic impact made 2020 unforgettable. Even those not touched directly by the virus experienced the upheaval of the economy and personal and work life, and the stress of dealing with ever-changing situations. Individuals, families, corporations and institutions face challenges no one anticipated on New Year’s Day.
All these affected constituencies are parties to insurance coverage, and the events of 2020 are reshaping their perspectives. It is difficult to envision how events will play out while we are still in the middle of the crisis, but this report looks several years forward to discuss how the North American insurance industry may be affected longer term by the fallout from the coronavirus.
The industry faced changes prior to the pandemic, and Fitch Ratings believes these trends will accelerate as a result of it. As the “longest year” enters its final weeks, Fitch provides its view of the possible longer term implications of the coronavirus pandemic for the North American insurance industry. Fitch identified six trends we believe are accelerating and provide observations of their potential impacts.
These trends will ultimately affect insurance company performance and ratings over the long term. This report focuses on the three major insurance sectors: Life, Property/Casualty (P&C) and Health.