Bird flu H5N1 and insurance industry
H5N1 strain of the influential Bird flu is posing a serious threat to human lives of late. Under the present circumstances, business houses are made aware of taking precautions in order to cope with any adverse conditions. Henceforth, the need arises to perfectly figure out a business continuity management plan and also ensure a research on the key risk indicators.
Questions might arise, keeping in mind the capabilities of some of the insurers in terms of an immobile reinsurance market. Owing to a static life insurance coverage situation and pertaining to the HHS prophecy, the worth of death claims from the flu for group life insurance would amount to $11 billion and $20 billion in terms of individual life insurance, resulting in a sum total of $31 billion.
The insurance industry is adorned by some companies who have a strong financial potential, but at the same time it also has some dark patches in terms of some relatively weaker ones. A ‘severe pandemic’ might just sound too harsh on a small fry to survive.
Under such consequences an absorption of the smaller players by their home state’s insurance department would seem inevitable. This influenza pandemic would certainly invite quite a handful of the industry dilemmas beyond the claims. The count of the aftermath would be gradually unfolded within a span of six to nine months. This in turn might see the investment markets slowly gaining back control within a period of time. An abrupt increase in the workload and a sudden reduction in the workforce would certainly raise a wall in front of the employing insurers.