Coronavirus A Cosmic Event In Insurance Industry History: Chubb CEO

Chubb Ltd Chief Executive Officer Evan Greenberg released a statement warning that the coronavirus will be the largest event in insurance industry history.

The insurance company recorded $13 million in losses linked to COVID-19 during the Q1 2020. Greenberg stated that “this event will be the largest event,” in insurance industry history, on an earnings call in which he shared Chubb’s first quarter results for 2020.

The CEO pointed to both the direct impact of the virus and the ripple effect of the pandemic on the economy as having an affect on both the liability and asset side of the balance sheet.

He went on to describe the way a pandemic affects insurers in the same way as a catastrophe. He said that infectious virus spread is particularly damaging as it is not restricted by geographic region nor is it limited by time, such as a single storm or seasonal event.

Insurers have already been receiving claims from policyholders filing for issues such as forced shutdowns and other ways they have been impacted by the coronavirus. Moreover, as the markets have been sliding, insurers are watching their investments tank.