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The Impact of COVID-19 on the Insurance Industry

Author

Listed:
  • Pius Babuna

    (School of Environment, Beijing Normal University, Beijing 100875, China
    Department of Geography and Environmental Science, The University of Reading, Whiteknights, P.O. Box 227, Reading RG6 6AB, UK
    College of Agriculture and Natural Resources, Kwame Nkrumah University of Science and Technology, Kumasi PMB KNUST, Ghana)

  • 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
    Chinese Academy of Agricultural Sciences (CAAS), Institute of Environment and Sustainable Development in Agriculture (GSCAAS), Haidian District, Beijing 100875, China)

  • Doris Abra Awudi

    (College of Agriculture and Natural Resources, Kwame Nkrumah University of Science and Technology, Kumasi PMB KNUST, Ghana
    Department of Nutrition and Food Hygiene, School of Public Health, Nanjing Medical University, Longmian Avenue 101, Nanjing 211166, China)

  • 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)

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 Ȼ112 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.

Suggested Citation

  • Pius Babuna & Xiaohua Yang & Amatus Gyilbag & Doris Abra Awudi & David Ngmenbelle & Dehui Bian, 2020. "The Impact of COVID-19 on the Insurance Industry," IJERPH, MDPI, vol. 17(16), pages 1-14, August.
    • Handle: RePEc:gam:jijerp:v:17:y:2020:i:16:p:5766-:d:396771
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    References listed on IDEAS

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    Cited by:

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    3. Ștefan Cristian Gherghina & Daniel Ștefan Armeanu & Camelia Cătălina Joldeș, 2020. "Stock Market Reactions to COVID-19 Pandemic Outbreak: Quantitative Evidence from ARDL Bounds Tests and Granger Causality Analysis," IJERPH, MDPI, vol. 17(18), pages 1-35, September.
    4. Saw Imm Song & Jennifer Tunga Janang & Erimalida Yazi & Fareiny Morni, 2022. "The Effects of Market Strength, Information Asymmetry, and Industrial Characteristics on Malaysian Firms’ CAR During COVID-19 Pandemic," Capital Markets Review, Malaysian Finance Association, vol. 30(1), pages 1-15.
    5. Tsvetkova, Liudmila & Okhrimenko, Igor & Belousova, Tamara & Khuzhamov, Leonid, 2022. "Relationship and mutual influence between poverty and insurance in a developing insurance market," Journal of Behavioral and Experimental Finance, Elsevier, vol. 36(C).
    6. Hua Guo & Yang Zhang & Yanling Peng & Tong Luo & Hong Wang, 2022. "Does COVID-19 Affect Household Financial Behaviors? Fresh Evidence From China," SAGE Open, , vol. 12(3), pages 21582440221, August.
    7. Tran Thi Lan, 2022. "Risk Awareness for Vietnamese’s Life Insurance on Financial Protection: The Case Study of Daklak Province, Vietnam," IJFS, MDPI, vol. 10(4), pages 1-17, September.

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