SCOR's Exec Committee says “COVID-19 - We in the (re)insurance industry have a leadership role to play now”

In a letter published this week - SCOR’s Executive Committee calls upon organisations and individuals to take immediate action to slow down the spread of COVID-19.

“Few other industries have the mathematical expertise to understand the potential impact that COVID-19 can have. And for life (re)insurance, no other industry has such an alignment with the health and well-being of our society. We need to spread our knowledge and educate our fellow citizens of the world to protect all of society, particularly our elderly, our ill and our health-care professionals.

“At the present time, based on current public and client information available, and with all required caveats and subject to the evolution of the pandemic across the globe and the effectiveness of containment measures put into place by the respective public authorities, SCOR does not foresee material impact on its book from COVID-19. SCOR will continue to regularly assess the COVID-19 impact on its business.

“What action can we in the insurance industry take?

It will be months before the pharmaceutical industry can develop and produce an effective vaccine or drugs to help fight this virus. There are only two ways we know today to slow down the spread – enhanced hygiene, particularly hand washing, and limiting social interaction.

“We are seeing many different reactions to the virus in Western countries today. Many people still do not appreciate the seriousness of this situation and continue to live their lives with little or only moderate adjustment to their daily routines. Most people are not medical professionals, actuaries or statisticians, so it can be hard for them to understand why any action is necessary as case numbers build gradually. That is why those of us in the insurance industry have such an important role to play in helping our fellow citizens understand about the spread of the virus and what actions can slow that spread down.

“Spreading the message, not the virus

There is more to be done and we are fortunate to be in a position of influence. We have seen action from governments and business leaders to various extents across countries. We are calling on everyone in this industry to spread information on the seriousness of this situation and maximise the actions they are taking, for the good of our entire society.

“Thinking ahead and anticipating the new normal

As we fight today’s war against the virus, we at SCOR are also thinking of tomorrow: one day, the pandemic will be over, but beyond the sanitary, economic and financial impact, this crisis has a structural impact. Things have changed: we will not return to the life we knew. We need to acknowledge that what looks like a disruption today, might actually become the new normal. There might well be a shift of paradigm, questioning the relevance of insurance, and reinsurance, to best address society’s needs. What seemed an extreme scenario yesterday might in fact be part of this new normal.

“Being able to learn from our experience will enable us to build a better world.”

Read the full blog at SCOR