coronavirus pandemic, are facing yet another existential threat as insurance companies spike premiums or exit the space, citing losses and the sector’s risks.Even before COVID-19, insurers globally were scaling back from riskier businesses to improve performance.
The pandemic’s profit hits have accelerated the trend and led underwriters to exit from, or raise premiums in, select categories.Hospitality businesses, particularly those needing coverage for accidents caused by alcohol-impaired clients, were already seen as higher risk, said Karen Ritchie, vice president at Baird MacGregor Insurance Brokers and president of the Toronto Insurance Council.