The latest issue of the Brand Finance Insurance 100 report, which is produced annually, shows the insurance sector is one of the most heavily impacted industries globally due to the coronavirus and could face a potential 20-per-cent loss in brand value due to the current pandemic.
The analysis shows that insurers are going to lose money both financially – due to the high volume of claims – and reputationally, as brands that refuse to pay out on Covid-19 related claims risk potentially irreversible damage.
David Haigh, Brand Finance CEO, said: “The Covid-19 pandemic is going to hit the insurance sector hard … insurance brands could face up to a 20-per-cent drop in brand value and, undoubtedly, we are going to witness revenue slowdown for all brands across the sector.
“Some brands should, however, fare better in terms of their margins, including the property and casualty insurance brands, as fewer such claims are expected during the far-reaching and ongoing lockdown period.”
With their total brand value reaching $151.5 billion, China is home to some of the most valuable insurance brands in the world, including Ping An in China which ranks as the ninth most valuable brand in the world, according to Brand Financial. The Insurance 100 report stated: “Ping An of China has recorded an impressive 20-per-cent brand value growth to $60.6 billion, extending its lead further as the world’s most valuable insurance brand. The brand’s commitment to expanding its portfolio and offering in the non-insurance and digital disruption space is truly setting it apart from its peers.”
Besides 12 insurers from China, there are 10 more from Asia in the top 100 insurance brands. Wherever they are based in the world, however, one thing is certain: insurers can maintain and even build on their brand value by getting their claims handling right and communicating efficiently – and even proactively – with customers.