Embed Size (px)
Citation preview
The Outbreak of Coronavirus 2019-nCoV
McLarens: Special Bulletin On 2019-nCoV
10 February 2020
mclarens.com
© 2020 McLarens. All rights reserved. Page 2
A Looming Potential Crisis The Coronavirus continues to spread globally
It’s been a little over a month since the outbreak of Nova Coronavirus(2019-nCon) in Wuhan City, Hubei Province of China. At the time of drafting this special bulletin, the number of newly confirmed infected cases extends far beyond China’s national borders. It is rapidly becoming a widespread global outbreak present in over 25 countries. The virus continues to raise concerns among governments and business communities worldwide as its full economic and financial impact is still unknown. Potential commercial losses stemming from Coronavirus are only beginning to be estimated around the world.
Questions regarding business disruptions, costs, and financial losses are prompting insured businesses to review their policies and the type of coverage they might have. Timing is of the essence for businesses to consult with insurance experts and loss adjusters in dealing with this complex and evolving situation that has all the signs of becoming a global outbreak.
Coronavirus – 2019-nCov
What is a Coronavirus?
According to the World Health Organization (WHO):
“Coronaviruses are a large family of viruses found in both animals and humans. Some infect people and are known to cause illnesses ranging from the common cold to more severe diseases such as Middle East Respiratory Syndrome (MERS) and Severe Acute Respiratory Syndrome (SARS).”
Photo courtesy of CNN
Cover page photo courtesy of Free to Use Sounds
mclarens.com
© 2020 McLarens. All rights reserved. Page 3
Which countries or regions are affected? Country/Region Confirmed cases Confirmed Deaths
China 40,142 908 Others (Those on cruise ships/not on land) 64 Singapore 43 Hong Kong 36 1 Thailand 32 Japan 26 South Korea 25 Taiwan 18 Malaysia 16 Australia 15 Germany 14 Vietnam 13 USA 12 France 11 Macau 10 Canada 7 United Arab Emirates 7 Italy 3 3 Philippines 3 1 India 3 UK 3 Russia 2 Spain 2 Nepal 1 Cambodia 1 Belgium 1 Finland 1 Sweden 1 Sri Lanka 1 TOTAL 40,513 910
As of 10th February 2020
Photo Courtesy of Lam Yik Fei for The New York Times
Although the above figures show those who have died, those who are actually confirmed to have the virus and those who have recovered, there are thought to be 60 million people in quarantine, and many tens of thousands of people are awaiting test results. Based on current figures in China, the fatality rate is about 2%. The WHO risk assessment in China is “Very High” whereas on a regional and global level, the WHO risk assessment is “High.”
mclarens.com
© 2020 McLarens. All rights reserved. Page 4
The above information has been taken from Johns Hopkins CSSE “Coronavirus 2019-nCoV Global Cases”.
Different countries have taken different precautions to try and limit the spread of the virus or stop the persons potentially with the virus from entering the country.
Restrictions range from recommending citizens not to travel to China, to banning anyone who has been in China in the previous 14 days from entering the country and banning all flights to and from China including those in transit. Local restrictions or recommendations include closing schools, sporting and other public facilities and recommending that social events are avoided. These restrictions are evolving on a daily basis.
Clearly the above restrictions and recommendations are having a significant effect on businesses such as airlines, hotels, sports centres, the food and beverage sector as well as general manufacturing as goods are restricted from moving. With Lunar New Year celebrations taking place at this time, the impact on business interruption and loss of income is greater than it could otherwise have been. Additional costs to business include decontamination and sanitizing, and reductions in staff due to illness, quarantine or stay- at-home restrictions.
Outbreak Timeline
31st December 2019 First reported case of an unknown virus in Wuhan, China
20th January 2020 282 cases were reported, with cases
recorded in three additional countries; Thailand 2, Japan 1, Korea 1
30th January 2020 11,953 cases were reported with 259
deaths and 23 countries affected. This led to the WHO declaring the outbreak
to be a Public Health Emergency of International Concern. (PHEIC)
10th February 2020 More than 40,500 cases confirmed
with 910 reported deaths
mclarens.com
© 2020 McLarens. All rights reserved. Page 5
Can Insurance respond to the Coronavirus Outbreak?
Photo Courtesy of Getty Images
It Depends…
There are many different businesses potentially affected, there are many different policy wordings within one territory, let alone globally. This means that the answer to the above question depends on the individual policies in each territory and on the circumstances of every loss.
Property policies typically require some damage to have occurred before any business interruption or increased cost of working cover is triggered. Denial of access clauses also usually require the denial to be due to an insured peril covered under the property damage section of the policy.
Some cover could be available under suppliers' or customers' extensions, which can be broad enough to cover suppliers of suppliers and customers of customers and do not always state that an insured peril under the property section needs to be the proximate cause of the loss.
Within the hospitality industry, Closure Cover can be extended to cover the occurrence of a Notifiable Disease, but these tend to require this to occur at the premises rather than within say a specified radius. Under marine cargo or goods in transit policies there is a possibility that there could be some mitigation of loss cover for items held in ports that might deteriorate if they cannot be moved or kept in the correct environment.
As the severity or length of the Coronavirus outbreak is unknown at this early stage, there may be other policies that could respond such as Trade Credit or Political Risks policies, however the time deductibles can be lengthy, so it may be some time before these policies will be called upon to respond.
mclarens.com
© 2020 McLarens. All rights reserved. Page 6
McLarens Global Network McLarens, with our international network of experienced loss adjusters in every major geographic region and over 39 countries, is ready to engage in pro-active discussions with clients. On average, our adjusters have over 20 years of experience and specialize in one or more loss types. They also provide clients with pre-loss planning and counsel to minimize loss opportunities and exposure.
We are already appointed to handle losses arising from the Coronavirus 2019-nCoV outbreak and are able to assist in any territory around the world as this crisis evolves.
Contact Us As the most affected countries dealing with this matter are in Asia Pacific, Peter Newall will be the main point of contact for enquiries, with Alex Benson as support.
For matters outside Asia Pacific, please contact Graham Smart.
Asia Rest of World Peter Newall Chairman, Asia Email: [email protected]
Mobile: +852 9557 0091
Alex Benson Manager Email: [email protected]
Mobile: +852 6021 8095
Graham Smart Chief Commercial Officer Email: [email protected] Mobile: + 44 (0)7894 751868
To learn more about our capabilities, visit: www.mclarens.com
Follow us on: @McLarensGlobal LinkedIn.com/McLarens
