Insurance Sector Update - Covid-19 Linked Claims Remain An Overhang: Motilal Oswal
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Motilal Oswal Report
The surge in Covid-19 infections and fatality rates has raised concerns on mortality claims the industry may witness in the coming months.
Most insurers reported a higher claim experience in FY21 and have made provisions to absorb potential claims that may arise in the wake of a more devastating Covid 2.0.
We note that against the total Covid-19 related deaths of ~163,000 reported in FY21, the fatality count has already increased to ~152,000 in FY22 year-to-date.
The claim experience is thus likely to stay adverse over the next couple of quarters, all the more due to delays in the reporting of claims.
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