Claims Decline As Insureds Stay Home
Property and casualty insurers have noted that since many are staying home during the COVID-19 pandemic, the frequency of auto, accident, and workplace injury claims has sharply declined. This could become a substantial offset to the insurance losses caused by COVID-19, reports the Wall Street Journal.
Travelers Cos. noted that slip-and-fall claims have dropped sharply since workers are staying home and not driving as much to stores, which help offset the insurer's COVID-19-related claims. Travelers also experienced a nearly 10-percentage-point improvement in the underlying combined ratio in personal auto insurance.
It is unclear how lasting this benefit will be, but a recent study by KPMG estimated that Americans may indefinitely drive less as work and shopping habits evolve. However, property and casualty insurers will still face claims from people who risk on-the-job exposure by going back to the office, losses related to a more active hurricane season, and civil disorder claims.