HONG KONG, June 15 (Bernama-BUSINESS WIRE) — A spike in claims due to a COVID-19 resurgence could lead to a capital event for some of the island’s non-life insurers with in-force pandemic-related insurance products, according to a new AM Best commentary.
In a new Best’s Commentary, titled, “Spike in Pandemic-Related Claims for Taiwan’s Non-Life Segment,” AM Best notes that the magnitude of the impact of COVID-19 claims on individual companies vary widely and are dependent on underwriting exposures relative to capital size, policy terms and conditions, reinsurance strategies and risk accumulation management. The pandemic policy gained significant traction when it was introduced in early 2021. Since the rapid spread of the Omicron wave in Taiwan in April 2022, all pandemic products (apart from some vaccine covers) have been withdrawn as per the Financial Supervisory Commission’s latest update.