Following the social unrest experienced in Chile during October 2019 and the subsequent economic crisis arising from the Covid-19 pandemic, the Chilean insurance market has experienced a renewed interest in political risk coverage not as a part of a property policy but instead as a coverage itself. In this regard, local insurers have started to offer a special product for Political Risk charging additional premium for what used to be an additional coverage under Property Policies.
Furthermore, and due to the current situation, credit and guarantee insurance has seen an increased interest since it is expected that a large number of small and medium companies will fall into default or will have to reorganize their business due to impact of the social unrest and the Covid-19 crisis.
Finally, in recent months, a large number of business have instructed their employees to work remotely, which has implied a quick reaction from employers to provide the necessary tools to assure business continuity, including Cyber-related products to avoid data breaches, ransomware attacks, among others.
In all, the recent social and economic crisis have created new business opportunities for both Insurers and Insureds to further develop products into a more sophisticated version of themselves.