INSURANCE experts have called for the remodelling of the insurance sector to cover pandemics, saying the raging COVID-19 plague has triggered a public health crisis without precedence in living memory.
In addition to causing massive deaths and severe human suffering, the pandemic has also set in motion a major economic crisis that will burden societies for years to come.
“Individuals and businesses face huge costs and losses, prompting questions around insurance coverage and the need for policy intervention in the future, the Insurance and Pensions Commission (Ipec) has said.
Insurance is an important financial tool when extreme events such as disasters occur, making available financial protection for populations that may otherwise be economically exposed.
In his address during a virtual journalist mentorship workshop organised by the National Social Security Authority (Nssa) recently, Ipec director of actuarial services Godwin Mutangadura emphasised the need to cover pandemics such as COVID-19 which has ravaged the world over.
“We now have an idea and going forward we will be able to cover such risks,” he said.
He added that studies from other jurisdictions were pointing to the need for remodelling of the sector.
The COVID-19 pandemic continues to spread, leaving far-reaching effects on lives, businesses and economies worldwide.
Local and national governments are escalating measures aimed at stemming the spread of the virus and mitigating its disruptive impacts.
Similarly, many companies are looking at various ways to protect their workforce and enhance their resilience while seeking potential responses to ongoing financial losses in their insurance policies.
Nssa occupational health and safety director Charles Shava said employees covered under his organisation would be paid should they get infected or injured on duty.