How will the coronavirus affect the insurance industry?

How will corona virus affect the insurance sector
How will corona virus affect the insurance sector

Coronavirus affected many sectors. Although the catering and tourism sectors are more prominent, many business lines related to these areas have also been negatively affected. One of them is the insurance sector. Although epidemics are out of scope in health insurances, they are included as a gesture by companies to support public health financing. This is expected to affect company balance sheets negatively in compensation payments. Similarly, the tourism sector and travel insurances in parallel to them were also affected. Bülent Eren, Deputy General Manager of Iron Health, thinks that the importance of health insurance is understood in this period and that there will be an increase in demand in the sales of private and complementary health policies in the future.


Many sectors remained in a difficult situation due to coronavirus. Although the most prominent are companies operating in the field of eating, drinking and traveling, many businesses and sectors connected to these businesses are also affected. One of them is the insurance sector. Although the insurance sector excluded epidemic diseases in health insurances, health expenditures caused by epidemic diseases were included in this period as a gesture to support public health financing of our country and to ensure that insured people feel safe. Stating that the indemnity payments will negatively affect the company balance sheets since an actuarial premium has not been received for epidemic illness expenses, Demir Health Assistant General Manager Bülent Eren stated that the insurance and profitability branches of the elementary companies have been used to offset the balance sheet negativities resulting from these expenditures. It is.

Travel Health Insurances Also Affected

Not only private health insurances, but also travel health insurances. Due to the risk of epidemic disease we are in, both international and domestic travels have been delayed and canceled. Foreign health policies have also been the most affected products due to the absence of foreign nationals from abroad. Stating that while sales and foreign health policies have been affected, new sales have decreased considerably due to the rightful avoidance of social contacts in all branches, Eren says that premium production due to physical difficulties in renovation has also been affected, but the sector with strong technological infrastructure is successful in this field. Another effect stands out as the delays in premium collections.

Policy Cancellations

Noting that new sales have almost stopped in the health branch in this period, Eren said that the renewals also decreased in some branches such as automobile insurance, and policy cancellations were experienced. The importance of health insurance was also more clearly understood due to this epidemic. For this reason, we think that there will be an increase in demand in the sales of private and complementary health policies in the coming period. ”

Hibya News Agency



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