28 Apr 2020
Posted in Insurance
Norway’s mandatory universal healthcare system to cover brunt of the COVID-19 costs
Norwegian private health insurers are not expected to be liable for COVID-19-related claims, with the tax-funded universal healthcare to cover people, says GlobalData, a leading data and analytics company.
GlobalData forecasts Norway’s insurance industry GWP to grow at a compound annual growth rate (CAGR) of 2.1% between 2019 and 2023, which has been revised down from the 3.3% growth expected before the pandemic.
GlobalData insurance analyst, Deblina Mitra, commented: “Noway’s insurance industry GWP growth is strong compared to most countries worldwide, and the direct insurance loss from the COVID-19 outbreak is expected to remain limited, with claims mostly incurring from trip cancellations, unemployment or sickness benefits, and death benefits.”
Norwegian insurers are offering customers extra services free of charge for a limited period. Tryg Forsikring, for example, extended medical assistance to all its corporate customers and their families until May 2020. Similarly, travel insurers are offering cancellation refunds for overseas private trips.
Mitra concluded: “The Norwegian insurance industry is expected to fare relatively well during this pandemic. Certain giveaways in health and travel will increase losses in the short-term, but are likely to have a very positive influence on customer satisfaction. It appears as though the industry will be able to afford it, even in these difficult times, so it looks to be a sensible gesture.”