19 Jun 2020
Posted in Insurance
Generali’s Europe dominated business battling high claims, says GlobalData
Generali Group has extremely high exposure to Europe, and especially in its native Italy, which has been heavily impacted by COVID-19 and this leaves it facing high payouts (insurance claims), says GlobalData, a leading data and analytics company.
GlobalData’s Covid-19 Company Impact: Generali Insurance Group Ltd report suggests that Generali is vulnerable as it has an extremely strong presence in Europe (which accounted for 93.7% of its revenue in 2018). However, one positive for the insurer is that it has quite a diversified book in terms of products. The non-life insurance accounted for just over a quarter of its total business at the end of 2018. The insurer also has low exposure to North America, where the number of cases is extremely high, and continues rising.
Deblina Mitra, Insurance Analyst at GlobalData, comments: “This limits the company’s exposure to key lines of business, such as business interruption and credit insurance, which are expected to drive claims. Other non-life insurance lines
such as motor and marine, aviation and transit are expected to face stagnant growth, reflecting the prevalent macroeconomic situation”
Generali has strong online channels, however, and is well-placed to deal with the crisis.
Mitra concludes: “Generali has been focusing on a multi-channel distribution network, based on a global agent network. It is now prioritizing digitalization and diversification of distribution to facilitate quicker distribution. It has also partnered with insurtechs such as Nest in Germany to help prevent claims.”