Navigating the Impact of COVID-19 on Property and Casualty Insurance

Automobile Insurance

Erie Insurance has announced a $200 million dividend to its auto insurance customers amid the pandemic, reflecting the significant reduction in miles driven. However, despite the decrease in driving, U.S. auto crashes have reportedly increased. This paradox can be attributed to various factors, including increased stress and anxiety among drivers, and changes in traffic patterns due to remote work and social distancing measures.

Business Interruption

Federal lawsuits are targeting insurers over COVID-19 business interruption claims, highlighting the strain on businesses due to the pandemic. Supply chain disruptions have further complicated insurance claims, with businesses fearing lawsuits from patrons who contract the virus. The cannabis industry, in particular, is exploring 20 ways to address marijuana reform amid COVID-19, reflecting the unique challenges faced by this sector.

Litigation and Workers Compensation

The pandemic has seen an upswing in 'Act of God' disputes, with insurers denying COVID-19 claims. Nurses, fed up with the lack of coronavirus protections, have filed lawsuits and planned protests at the White House. In terms of workers' compensation, California projects virus-related costs to reach as high as $33.6 billion. Employers may exclude payroll to employees not working, according to the National Council on Compensation Insurance, while COVID-19 presumptions could lead to billions in losses.