How COVID-19 is Changing the Insurance Industry

COVID-19 is changing the world as we know it and going forward, insurance coverage will be even more critical. For many, unfortunately, insurance may also be harder to access. It’s no secret that claims have skyrocketed for life, health, and business policyholders. That means insurers are taking losses and in response, many will begin tightening underwriting requirements. Ultimately, it’s the consumer who may be left in the cold and that’s why having the right agent to help navigate this new landscape is crucial. Also, it’s critical that consumers get covered sooner rather than later. 

Health insurance is hotly debated in Congress but COVID-19 has brought the debate much closer to home for families. In the first place, massive job losses have resulted from the pandemic and that means people have lost their insurance. With the job market being unfavorable to many still seeking employment, getting coverage through an employer is unlikely. If the Affordable Care Act (ACA) is overturned in the future, however, there could be a much bigger issue. Prior to ACA, having a pre-existing health condition, such as a severe respiratory illness, made it almost impossible for people to get health insurance in the individual market. If ACA is overturned, it’s possible that insurers could discriminate against people with COVID-19. 

Life insurance is also being impacted by the pandemic. If you’ve been infected with the virus or have recently traveled to a region experiencing a heavy outbreak, applying for life insurance may take longer and be more expensive. Recently, a handful of companies even stopped selling policies to customers above a certain age. As COVID-related deaths have spiked and insurers are paying out more claims than usual, these reactions aren’t surprising. On the brighter side, however, life insurance has actually become easier to obtain for many because quarantines have eliminated on-site exams in many instances. Other insurers are offering coverage temporarily but extending the exam deadline for new customers.

Business owners may also find the insurance market to be slightly tighter. Before 2020, there had been a 10-year run in premium reductions for corporate property and casualty insurance. The pandemic has all but guaranteed that reductions aren’t in the immediate future. The elevated number of claim settlements and costs of reinsurance has forced underwriters to be more strict. For many business owners, that has meant an increase of 20%-50% in pricing. As courts continue to rule on COVID-related business interruption cases, there could be additional requirements and costs placed on businesses. 

The best way to secure your assets and wealth is to get coverage now. Getting covered today will help consumers avoid some of the pending changes in the insurance market and avoid even higher pricing, in the future. As always, Insure Black recommends talking to knowledgeable, certified agents that have your best interest at heart. Search our directory of agents today to protect your home, life, business, and everything that matters.