The Impact of COVID-19 on the Insurance Industry

Pius Babuna, Xiaohua Yang, Amatus Gyilbag, Doris Abra Awudi, David Ngmenbelle and Dehui Bian
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Pius Babuna: School of Environment, Beijing Normal University, Beijing 100875, China
Xiaohua Yang: School of Environment, Beijing Normal University, Beijing 100875, China
Amatus Gyilbag: College of Agriculture and Natural Resources, Kwame Nkrumah University of Science and Technology, Kumasi PMB KNUST, Ghana
Doris Abra Awudi: College of Agriculture and Natural Resources, Kwame Nkrumah University of Science and Technology, Kumasi PMB KNUST, Ghana
David Ngmenbelle: College of Agriculture and Natural Resources, Kwame Nkrumah University of Science and Technology, Kumasi PMB KNUST, Ghana
Dehui Bian: School of Environment, Beijing Normal University, Beijing 100875, China

IJERPH, 2020, vol. 17, issue 16, 1-14

Abstract: This study investigated the impact of COVID-19 on the insurance industry by studying the case of Ghana from March to June 2020. With a parallel comparison to previous pandemics such as SARS-CoV, H1N1 and MERS, we developed outlines for simulating the impact of the pandemic on the insurance industry. The study used qualitative and quantitative interviews to estimate the impact of the pandemic. Presently, the trend is an economic recession with decreasing profits but increasing claims. Due to the cancellation of travels, events and other economic losses, the Ghanaian insurance industry witnessed a loss currently estimated at GH ?112 million. Our comparison and forecast predicts a normalization of economic indicators from January 2021. In the meantime, while the pandemic persists, insurers should adapt to working from remote locations, train and equip staff to work under social distancing regulations, enhance cybersecurity protocols and simplify claims/premium processing using e-payment channels. It will require the collaboration of the Ghana Ministry of Health, Banking Sector, Police Department, Customs Excise and Preventive Service, other relevant Ministries and the international community to bring the pandemic to a stop.

Keywords: coronavirus; COVID-19; insurance industry; infection rate; National Insurance Commission; pandemic; World Health Organization (search for similar items in EconPapers)
JEL-codes: I I1 I3 Q Q5 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

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