Abstract
The COVID-19 pandemic has accelerated the pace of evolution of insurance in many aspects and in relation to many sectors and insurance lines (e.g., health insurance, or cargo marine insurance, life insurance, business interruption insurance, travel insurance, etc.). Moreover, the occurrence of COVID-19 underlined the importance in the managing of pandemic risk. This chapter discusses the insurance developments in relation to the transformation of the insurance industry, not only, but mainly, due to the occurrence of the COVID-19 pandemic. There is also a discussion about the impact of the pandemic risk in the governance of insurance companies under Solvency II. Conclusions and forecasts on the way forward, as well as recommendations for the future of insurance in the light of the COVID-19 pandemic but also post-pandemically, are attempted.
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Notes
- 1.
Frick and Barsan (2020). Available at SSRN : https ://ssrn.com/abstract=3686489.
- 2.
R. Balasubramanian et al., Insurance 2030 – The impact of AI on the future of insurance, https://www.mckinsey.com/industries/financial-services/our-insights/insurance-2030-the-impact-of-ai-on-the-future-of-insurance.
- 3.
R. Balasubramanian et al., Insurance 2030 - The impact of AI on the future of insurance, https://www.mckinsey.com/industries/financial-services/our-insights/insurance-2030-the-impact-of-ai-on-the-future-of-insurance.
- 4.
Friedlmaier et al. (2018). Forthcoming, available at SSRN: https://ssrn.com/abstract=2854756 or https://doi.org/10.2139/ssrn.2854756.
- 5.
R. Balasubramanian et al., Insurance 2030 – The impact of AI on the future of insurance, https://www.mckinsey.com/industries/financial-services/our-insights/insurance-2030-the-impact-of-ai-on-the-future-of-insurance.
- 6.
Jerry (2021).
- 7.
For example, a home insurance company could use AI to get information about a person’s geographical location, marital status and likelihood of filing a claim to set premiums based on the defining criteria.
- 8.
E. Rivelli, How AI is bringing the insurance industry into the future, https://www.bankrate.com/insurance/car/artificial-intelligence-meets-the-insurance-industry/.
- 9.
Lloyd’s, Lloyd’s launches pioneering parametric earthquake insurance policy in New Zealand, https://www.lloyds.com/about-lloyds/media-centre/press-releases/lloyds-launches-pioneering-parametric-earthquake-insurance-policy-in-new-zealand.
- 10.
Van Broekhoven et al. (2006), www.actuary.edu.
- 11.
Madhav et al. (2017), https://www.ncbi.nlm.nih.gov/.
- 12.
Monaco (2018), p. 457; Erdélyi (2016), p. 27 ss.; Michaell and Smith (2010), p. 357, 359 ss.; Faroult (2011a), p. 48; Faroult (2011b), p. 40; Sandström (2011), p. 625; Torre-Enciso and Hernandez Barros (2010), p. 119; Nagy et al. (2010), pp. 5–20; Doff (2008), p. 193; Doff (2007); Eling et al. (2007), pp. 69–85.
- 13.
Basel II is a set of international banking regulations put forth by the Basel Committee on Bank Supervision, which leveled the international regulation field with uniform rules and guidelines. Basel II expanded rules for minimum capital requirements established under Basel I, the first international regulatory accord, and provided the framework for regulatory review, as well as set disclosure requirements for assessment of capital adequacy of banks. The main difference between Basel II and Basel I is that Basel II incorporates credit risk of assets held by financial institutions to determine regulatory capital ratios. Report of the Committee of Wise Men on Regulation of European Securities Markets, 15 February 2001, https://www.ec.europa.eu/internal_market/securities/docs/lamfalussy/wisemen/final-report-wise-men_en.pdf.
- 14.
Montalenti (2014), p. 399.
- 15.
- 16.
SHRM (2020), Navigating COVID-19: Impact of the pandemic on small businesses, Society for Human Resource Management, https://shrm.org (accessed on 6 November 2020).
- 17.
Ladbury (2020).
- 18.
- 19.
Preparatory Guidelines on product oversight and governance arrangements by insurance undertakings and insurance distributors, www.eiopa.it.
- 20.
- 21.
Volpe Putzolu (2019), p. 166.
- 22.
Schwarcz (2008–2009), p. 193.
- 23.
- 24.
McCunn (2019), pp. 483–506.
- 25.
Hafiz et al. (2020), available at SSRN: https://ssrn.com/abstract=3555980.
- 26.
Schwarcz (2020), pp. 16, 2021–2022, Duke Law School Public Law & Legal Theory Series No. 2020-71, Available at SSRN: https://ssrn.com/abstract=3712534 or https://doi.org/10.2139/ssrn.3712534.
- 27.
Gründl et al. (2020). Available at SSRN: https://ssrn.com/abstract=3748753 or https://doi.org/10.2139/ssrn.3748753.
- 28.
Leslie (2021), p. 372.
- 29.
Abriani and Schneider (2021).
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Landini, S., Noussia, K. (2023). Insurance Developments in the Light of the Occurrence of the COVID-19 Pandemic. In: Muñoz Paredes, M.L., Tarasiuk, A. (eds) Covid-19 and Insurance. AIDA Europe Research Series on Insurance Law and Regulation, vol 7. Springer, Cham. https://doi.org/10.1007/978-3-031-13753-2_1
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