Insurance companies have had quite a year. First, it was natural disasters across the world, costing these firms billions, and now there is a massive global virus outbreak that most governments don’t even know how to deal with. There is a lot dependent on insurance companies these days and some are even saying that there is a need for massive transformation in this field because the existing regulations and services don’t seem that well suited for the current reality that we live in.
The Need for Change in The Insurance Industry
There have been conversations about the possible threats from climate change and how it could affect the insurance industry, whether or not the concerns about global warming should be considered by insurance companies when creating their services. Among that the health anxiety about the Coronavirus is currently taking the world by storm not only in the health department but all around different industries. This means that not are these companies losing their grip on the stocks, they will also be required to apply huge changes in order to accommodate the needs of their clients and allow small businesses to actually bounce back from this viral outbreak.
The outbreak has stunted the world in a sense hitting the tourism industry the hardest and making international travel scary and impossible for some people. This is why there are so many conversations around the world about how the house we continue to deal with the global challenges and if there is room for improvement specifically within the insurance industry that can better accommodate its customers while continuing making a profit and there is no easy solution in sight.
Virus as A Wakeup Call
Coronavirus has hit the market around the world, but of course, the Chinese stocks have taken the biggest hit. Bank and financial institutions are losing millions a day, some of them reporting 30% or bigger losses as the outbreak starts to stabilize. Chinese Yuan is the weakest it has been in months, but the gbp usd chart remains stable, at least for now. This virus has caused huge changes across industries and for the most part, people have no idea how to react.
Britain specifically has put pressure on insurance companies to cover businesses for coronavirus losses across England. The government has plans to declare the virus as a “notifiable disease” and a formal classification that many insurance companies require in order to provide financial aid.
Considering the sheer amount of victims and the global panic you would assume that extra procedures would not be required for the insurance companies to try and help out as many of their client as possible but many small businesses are currently struggling to get by and aren’t receiving any help from these companies because the virus hadn’t been declared a notifiable disease just yet, because this is a new virus.
Small businesses are definitely one of the groups that will have to face the biggest consequences because of this outbreak. The Coronavirus has taken a toll on the majority of the industries, people are afraid to go to public gatherings or places that might be crowded. The international travel has been stunted and the tourism industries across the globe, but specifically in places where the outbreak has reached a new height, the businesses that usually depend on tourists are facing their biggest financial challenge in years.
Small Businesses Looking for A Savior
The insurance companies are not covering these small businesses and so many overseas bookings are now being canceled, so the business owners are relying on insurance to cover these fees in order to keep their businesses going but the insurance firms don’t necessarily share this view. If the changes in insurance companies and the policies don’t come soon, all these small businesses could lose way more money than they can afford and this would add another layer of frustration and challenges caused by the coronavirus.
This outbreak caught the world off guard and its scale turned out to be global, with countries in different parts of the world facing similar situations and similar challenges, even outside the healthcare system, which on its own is struggling to keep up and is not even ready to think about the possible aftermath of the outbreak.
Coronavirus has affected the financial, tourist and healthcare industries, all of which are crucial to the economy of the majority of the countries. They have also made communication between the countries much harder because the traveling is unsafe right now.
The world is still confused about ways to deal with the virus, there are so many industries that have been affected and that need different sorts of coping instruments that it is difficult to provide solutions for all of them.
When it comes to traveling the flights have been canceled to the destination where the outbreak seems to be getting out of hand. The health professionals are working overtime, exhausting all their resources to accommodate as many people as possible but when it comes to businesses they are definitely not the priority for most policymakers right now.
While there is perfectly good reasoning behind this approach, the small business owners who feel this financial burden the hardest, won’t even get the help from the insurance companies. The virus has definitely changed the way the whole world operates and has created a whole set of new challenges that will need to be taken care of as soon as possible.
The revolution in the insurance business has been long overdue, and if this outbreak will finally bring the change then at least the business owners will have more confidence in the future.