(Reuters) – The aviation sector is at greatest risk of business shortages as a result of the coronavirus pandemic, according to a survey by insurers published by broker Gallagher on Tuesday.
Only 29% of credit and political risk insurance companies had seen claims directly related to the virus so far showed the survey of insurers, conducted in June and July.
Companies or lenders buy credit insurance to get coverage for not paying for goods or services.
19659002] However, pandemic credit insurance claims are likely to increase later this year or early next year, as companies struggle to stave off bankruptcy, says Matthew Solley, CEO of Structured Credit and Policy Risks at Gallagher.
Aviation, oil and energy and tourism were the three sectors in their portfolios that affected insurers the most.
Virgin Australia, Air Mauritius and Colombia-based Avianca are among airlines that have ceased operations for a few months, with aircraft based on lockdowns around the world. Insurers are also worried about payments from governments, with Zambia being seen as the biggest risk.
In the broader political risk insurance market, which may cover issues ranging from expropriation. to war, Argentina was seen as the biggest concern.
The survey of 76 insurers from 46 companies in Lloyd's London and the wider London commercial insurance market was conducted between 24 June and 9 July.
More insurance and risk management news about the coronavirus crisis here. Catalog