Asset Details
Do you wish to reserve the book?
Side effects of the pandemic: impacts on the business interruption insurance market
Hey, we have placed the reservation for you!
By the way, why not check out events that you can attend while you pick your title.
Oops! Something went wrong.
Looks like we were not able to place the reservation. Kindly try again later.
Are you sure you want to remove the book from the shelf?
Side effects of the pandemic: impacts on the business interruption insurance market
Do you wish to request the book?
Side effects of the pandemic: impacts on the business interruption insurance market
Please be aware that the book you have requested cannot be checked out. If you would like to checkout this book, you can reserve another copy
We have requested the book for you!
Your request is successful and it will be processed during the Library working hours. Please check the status of your request in My Requests.
Oops! Something went wrong.
Looks like we were not able to place your request. Kindly try again later.
Journal Article
Side effects of the pandemic: impacts on the business interruption insurance market
2025
Overview
The aim of this article was to analyze the underwriting dynamics and coverage extent in business interruption insurance, investigating the probability updating process during the pandemic. While the impact of the pandemic on the business insurance market in Brazil has not been quantified, this study fills that gap by identifying the pandemics effects on the business interruption line of business (LOB) and highlighting any policy reformulations. The relevance of this paper is examining how the insurance market perceives and reacts to unpredictable exogenous events, and offering insights into the behavior of economic agents under these conditions. The findings reveal that the pandemic significantly impacted the insurance market, particularly the business interruption LOB. This research provides behavioral evidence that could inform responses to future unexpected adverse events in the insurance sector. We used a two-stage panel data regressions, using official data from the Brazilian insurance market covering Jan/2003-Dec/2023, with a total of 25,333 observations from 180 insurers. The impact of the pandemic on underwriting decisions, premium collection, and claims within business interruption and other LOBs was estimated. During the pandemic, operations in the business interruption LOB and premium revenues showed a gradual decline. Initially, there was a 0.60% increase in claim payments, followed by a stabilization period. The pandemic's impact on the business interruption insurance market deviated from the overall insurance market trend. Evidence of the probability updating phenomenon was observed within this industry.
Publisher
Universidade de São Paulo, FEA, Departmento de Contabilidade e Atuária
