Fitch issues statement on impact of software issue on insurance sector

In a statement from Fitch, it was noted that preliminary market estimates for global insured losses could be in the mid-to-high single-digit billion-dollar range, which would not translate into a significant impact for insurers, though these remain subject to ongoing claims and litigation.

The statement noted that it is unlikely that the recent software issue originating from CrowdStrike will have a significant impact on the financial results of global insurance and reinsurance companies.

The statement indicated that the most affected insurance lines would be business interruption, contingent business interruption, and cyber, while also noting that some smaller lines such as travel insurance, event cancellation, and technology errors and omissions would also be affected.

The statement pointed out that sectors such as healthcare and airlines would be more affected, and noted that, unlike the Americas, a large portion of the business day in Asia-Pacific, Europe, the Middle East, and Africa was impacted by the disruption.

News Source: AA