Sustained domestic transmission of SARS-CoV-2 would worsen COVID-19-pandemic-related losses for Taiwan’s non-life insurers this year and end the sector’s 21-year profit streak, Taiwan Ratings Corp (中華信評) said yesterday.
The sector is likely to report an overall underwriting loss this year due to COVID-19 coverage, thus terminating the sector’s long profitable streak, the local arm of S&P Global Ratings said.
“We see considerable uncertainty over the potential claims facing non-life insurers,” Taiwan Ratings credit analyst Patty Wang (王珮齡) said, adding that heavy losses seem likely and could negatively affect capitalization for insurers without proper capital restoration plans.
The risks are particularly evident for insurers