COVID-19: Credit Implications for Insurance Companies

COVID-19: Credit Implications for Insurance Companies
Thought Leadership Webinar: Insurance companies around the world are facing unprecedented market volatility due to the COVID-19 pandemic while experiencing increasing claims in certain segments. This webinar will examine the impact of the pandemic on the credit profile of insurance companies, as well as the outlook for insurance credit ratings in 2021.
 


Presented By:
Marcos Alvarez
Sr. VP, DBRS Morningstar


Date:
November 18, 2020


Time:
10:00 a.m. - 1100 a.m. EST
3:00 p.m. - 4:00 p.m. GMT


Session Length:
60 minutes

 

About This Webinar

The Coronavirus pandemic continues to spread across the globe causing disruptions to individuals and organizations, including mandated lockdowns.  During this time, insurance companies have incurred underwriting losses as a result of the outbreak. However, potential losses are not limited to insurance underwriting losses. Equity market fluctuations and cuts in interest rates by central banks around the world to limit the economic fallout from the pandemic have also affected investment income of life and P&C insurance companies due to the fluctuations in realized and unrealized market losses.

Property & casualty insurance companies have also been subject to litigation around business interruption claims and settlements, which can result in additional losses in the near future. Moreover, an active year in terms of natural catastrophes such as hurricanes and wildfires is adding to P&C insurers’ worries; however, the industry remains well capitalized and supported by an increase in general premiums levels that began well before the pandemic. On the life insurance side, the impact of mortality and morbidity remains manageable and quantitatively lower than pandemic scenarios these companies typically use in their stress tests and capital calculations. Nevertheless, given life insurance companies’ sizable investment portfolios, market volatility has taken a toll in their profitability. For both segments, a prolonged global recession could also trigger a general deterioration in the credit quality of their bond portfolios due to defaults and credit downgrades.

Key takeaways:

  • Credit profile of insurers have been more affected by financial markets volatility than underwriting losses related to the pandemic
  • Litigation and settlement of business interruption insurance claims remain an area of concern for P&C insurers
  • Mortality and morbidity risks still manageable relative to stress tests and scenario planning of life insurance companies
  • Most insurance companies are better capitalized today than they were during the Global Financial Crisis
 
About Our Expert  

  
 
  Marcos Alvarez is a Senior Vice President at DBRS Morningstar, where he heads the insurance ratings practice based out of Toronto, Canada. Marcos has more than a decade of experience assessing and managing credit risk of global insurance and reinsurance companies, including negotiating credit terms of lending and derivatives contracts during previous roles at global financial institutions in Canada and the United States. He started his insurance career as a property and energy underwriter for AIG more than 15 years ago.

Marcos has a background in economics and a Master of Business Administration from the Rotman School of Management at the University of Toronto.
 

Continued Risk Learning Credits: 1

PRMIA Continued Risk Learning (CRL) programs provide you with the opportunity to formally recognize your professional development, documenting your evolution as a risk professional. Employers can see that you are not static, making you a highly valued, dynamic, and desirable employee. The CRL program is open to all Contributing, Sustaining, and Risk Leader members, providing a convenient and easily accessible way to submit, manage, track and document your activities online through the PRMIA CRL Center. To request CRL credits, please email learning@prmia.org.

  Registration  
  Membership Type Price  
       
  Members (Sustaining, Corporate, RIM & Contributing)
COMPLIMENTARY  
  Non Member $30 USD
 
       

If this is your first time accessing the PRMIA website you will need to create a short user profile to register. Save on registration by becoming a member.

 
When
11/18/2020 10:00 AM - 11:00 AM
Where
Thought Leadership Webinar
 

Sign In to Register for Event


Questions?

Contact Us


Looking to further your career?

Become a Member

Sign Up for Mailing List



Questions?

Contact Us


Looking to further your career?

Become a Member

Sign Up for Mailing List