Coronavirus Poses Risk for P&C Insurers but Also Opportunity
Losses look manageable, and this could be a good time to buy.
|Editor’s note: Read the latest on how the coronavirus is rattling the markets and what investors can do to navigate it.|
While significant uncertainty surrounds the impact of the coronavirus crisis on the insurance industry, several participants have said that they believe it will be the largest loss event in the industry’s history. Claims losses from COVID-19 are likely to be diffused across a number of insurance lines, but the hits will primarily center on commercial lines. We believe personal lines won’t see major negative impacts, and personal auto will in fact see a material reduction in claims.
Brett Horn does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.