FACULTY OF COMPUTER AND MATHEMATICAL SCIENCES

(CASE STUDY 2)

COURSE CODE : ASC302

COURSE NAME : ACTUARIAL SCIENCE

SUBMITTED TO : SIR AHMAD NUR AZAM BIN AHMAD RIDZUAN

SUBMITTED BY : IZZAH BATRISYIA BINTI KHAIRUL HADI (2020817938)

CLASS : CS1124A

DATE OF SUBMISSION : 17 JUNE 2022

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 TABLE OF CONTENT

Content Pages

Introduction 3

The challenges faced by the insurance company in Malaysia

4-7

7-10
How do they prepare to counter the challenges?

What is the strategy(ies) can be taken by the insurance company to solve the 10-14
challenges?

Conclusion 15

References 16-17

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INTRODUCTION

In April 2020, the COVID-19 Pandemic is still active and wreaking havoc on people,
organizations, and industries all over the world. Many countries throughout the world have
enforced a country-wide lockdown, effectively shutting down all companies save those that are
vital. Aside from the astounding number of deaths and infections around the world, the Pandemic
has an impact on businesses and livelihoods in a variety of ways that will forever change the
planet. The Malaysian government declared on March 25, 2020, that the Movement Control Order
(Restricted Movement) for the entire country will be extended from March 31, 2020, to April 14,
2020. The Prevention and Control of Infectious Diseases Act 1988 and the Police Act 1967 are
used to make this order. (TEOH, 2020)

As claim payers, employers, and capital managers, insurers are responding to the
spreading COVID-19 pandemic on numerous fronts. Each faces unique challenges, not only for
the sector but also for the economy and society. Insurance firms are facing substantial operational
issues, one of which is the increased number of claims filed for specific types of business, which
is causing liquidity and capital restrictions for insurers. Even while the insurance industry is
normally well prepared for significant loss occurrences, like as pandemics, the financial
consequences will take time to manifest, making it difficult to assess the sector's final financial
impact. (DELOITTE, 2020)

According to Malaysia's central bank, the impact of the COVID-19 epidemic on the
insurance business will be manageable, with insurers and takaful operators able to fulfill the
statutory capital adequacy levels. According to The Edge Markets, Bank Negara Malaysia (BNM)
analyzed the market's resilience against scenarios with higher-than-usual claims. COVID-related
ex-gratia payments to policyholders and increased claims for policies without a pandemic clause
were among the stress scenarios used. It also looked for a mild increase of up to 17% in the
general insurance claims ratio. (PWC, 2020)

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The challenges faced by the insurance company in Malaysia

There is several insurers’ risk type that will also give an impact on the insurance industry
and one of them is a market risk which refers to the risk of an invested asset's rate or market price
fluctuating. Credit Risk is the potential that one or both contracting parties may be unable to fulfill
their financial obligations under the contract. Other than credit, market, and interest rate risks,
operational risk is a risk of loss. (IRMI, 2022)

Strategic risk is the risk of long-term policy decisions causing uncertainty. Liquidity Risk is
exposure to adverse cost or return variance resulting from a financial instrument's lack of
marketability at levels consistent with previous sales. The risk of loss associated with
serendipitous occurrences is known as event risk. (IRMI, 2022)

According to Allianz Malaysia Berhad Chief Executive Officer Zakri Khir, the COVID-19
epidemic continues to weigh heavily on the economy, and its repercussions on the insurance
sector have not yet fully emerged. According to Zakri, the business is set to face considerably
greater hurdles in the coming months, with the pandemic's consequences prompting Malaysians
to reconsider their purchasing patterns. (ALLIANZ, 2021)

"The loss of jobs, low-income levels, and clear indicators that people are not spending
enough are my biggest concerns about the economy." Uncertainty, low consumer confidence,
which affects purchasing power, and supply chain disruptions are all contributing reasons. Any
economy needs consumption to grow, and the earlier we can reverse some of these causes, the
faster the economy will recover. "These correspond to some of the industry's most pressing
issues," Zakri said. (ALLIANZ, 2021)

"In the current context, the pandemic casts a pall over everything, and the insurance
business will undoubtedly undergo a transition as a result." It's still too early to say to what extent,
but there are indicators of substantial structural shifts. There are no trends at this time because
the duration is too short, but we will take things as they come. "The situation is quite fluid," Zakri
remarked. (ALLIANZ, 2021)

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 "We need to prepare, get in shape, and evolve." "In the current environment, we need to
have an agile operating model, bring fresh concepts, and offer inexpensive solutions that meet
the needs of customers," Zakri continued. "Moreover, one of the most compelling reasons to get
insurance is the promise of protection and the ability to file a claim if the need arises. We must be
available to our consumers since any shifts in consumer behavior would have a direct impact on
the industry." (ALLIANZ, 2021)

Personnel and passenger health, problems with crew changes, or the crew refusing to go
to an afflicted location are all pandemic consequences for the shipping sector. There may also be
delays in Chinese ports of call and subsequent ports of call; cargoes may no longer be available
or loadable. Even though the International Maritime Organization ("IMO") has allowed trade in
and out of China to continue without direct travel restrictions, this may change in the future based
on future WHO guidance and discretionary decisions made by individual enterprises. (TEOH,
2020)

Marine Cargo Insurance Implications bring risk to the worldwide marine industry. For cargo
and stock throughput, due to the predicted shortage of workers at all major points in the supply
chain, the capacity to distribute and handle items will be reduced. Cargo is also expected to be
detained at ports for longer periods of time, with storage places seeing a rise in volume as
stockpiles await their next destination. (TEOH, 2020)

There will be a delay. While many businesses will want to keep their cargo moving to
avoid any trade disruptions, we must keep in mind that a delay during normal transit or while the
items are in storage may be unavoidable. Most of the cargo and stock throughput plans do not
cover loss or damage caused purely by delays. (TEOH, 2020)

Next, encountering delays or re-routing goods to a different destination owing to

government restrictions will result in an additional charge. Although these fees are typically
limited, the additional forwarding costs clause; or something similar, will provide further financial
support if you incur additional expenses in addition to your regular outgoings. (TEOH, 2020)

Other than that, perishable goods such as pharmaceuticals and food products must
adhere to a strict and well-monitored timeline. If your products are sensitive to temperature or
have a short shelf life. In the current Pandemic outbreak, standard marine insurance does not
cover inherent vice or delay, yet both will function when ports are clogged and cargo clearance is
delayed. (TEOH, 2020)

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 Life insurers and family takaful operators wrote about seven million individual medical
reimbursement policies and certificates last year, accounting for 68 percent of total protection
insurance and takaful claims. Medical reimbursement insurance and takaful cover in Malaysia is
primarily designed to cover or refund the costs of inpatient and certain outpatient medical
treatments, either totally or partially. (MARKET, 2021)

Bank Negara Malaysia (BNM) said in its Financial Stability Review report for the first half
of 2021 (1H21) released on Wednesday that the combined ratios of insurers' and takaful
operators' medical portfolios reduced in 2020 compared to 2019. "The lower claims were mostly
driven by temporary factors, such as movement restrictions, reduced social contact due to the
implementation of remote working and learning, and unwillingness to seek non-critical medical
treatment at hospitals during the epidemic," it stated. (MARKET, 2021)

It's worth emphasizing that most claims stemmed from life-threatening therapies that
couldn't be postponed. The decrease in the number of claims during the Covid-19 pandemic was
somewhat offset by an increase in the average cost per treatment of 14% for non-surgical
treatments and 15% for surgical treatments, which outpaced the long-term trends of 8% and 9%
each year, respectively. Once the pandemic has passed and transportation restrictions have been
gradually lifted, the central bank anticipates the number of claims to return to normal. (MARKET,
2021)

"Hospitalization rates from common non-surgical treatments including stomach flu and
dengue fever are projected to revert to previous levels." Although the extent of the post-pandemic
recovery in medical claims is unknown, observations from other markets point to the probability
of a transitory spike in healthcare utilization. This could be attributed to "a considerable rise in the
number of claims compared to the pandemic period due to delayed non-critical treatments and
diagnoses from postponed medical visits by individuals who had previously avoided attending
hospitals due to Covid-19 worries," according to the report. (MARKET, 2021)

According to BNM, the average treatment cost could rise in the short term due to
worsening health conditions exacerbated by delays in seeking treatment. "Demand-supply
dynamics may also drive-up costs, especially for medical goods and services, which may arise
due to increased demand." According to claims data from 2018, hospital supplies and services
accounted for 60% and 70% of claimable surgical and non-surgical treatment expenditures in
Malaysia, respectively. Furthermore, greater expenses from pandemic-related practices are
expected to prevail soon," the report stated. (MARKET, 2021)

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 To conclude, people losing job due to the Covid-19 pandemic has greatly impacted the
insurance industry. The policyholder’s financial problems are pressing the insurance company to
modify the product pricing so they can afford it. Next, in marine insurance, delaying problems
arise because of the small number of employees. This problem affects most marine insurance
because they did not cover the loss because of delays. The other challenge is that there will be
high claims in medical insurance in the future due to people delaying getting treatment in the early
pandemic because of avoiding Covid-19 disease. The price for treatment will be high as their
health worsens due to late treatment.

How do they prepare to counter the challenges?

There are a few steps of risk management process. Identifying the hazards that the
business is exposed to in its operating environment is the first stage in the risk management
process. It's critical to recognize as many of these risk variables as possible. These risks are
manually recorded in a manual environment. If the company uses a risk management solution,
all this data is entered immediately into the system. (THOMAS, 2022)

It is necessary to examine a risk once it has been recognized. The risk's scope must be
determined. It's also crucial to comprehend the relationship between risk and other internal
components. It is crucial to establish the severity and gravity of the risk by looking at how many
business operations it affects. There are dangers that, if realized, may bring the entire firm to a
halt, while others will merely cause minor hassles in the analysis. (THOMAS, 2022)

After that, the risks must be ranked and prioritized. Depending on the severity of the risk,
most risk management solutions include several risk categories. Risks that can result in
catastrophic loss are rated the highest, while risks that may cause some inconveniences are rated
the lowest. Ranking risks is crucial because it allows the organization to get a holistic view of the
risk exposure across the board. The company may be subject to several low-level hazards, but
they may not necessitate involvement from higher management. Only one of the highest-rated
dangers, on the other hand, necessitates immediate action. (THOMAS, 2022)

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 Every danger must be minimized and eliminated to the greatest extent practicable. This is
accomplished by contacting specialists in the field to which the risk pertains. In a manual system,
this means calling each stakeholder and then scheduling meetings for everyone to talk about and
debate the concerns. (THOMAS, 2022)

Not all dangers can be completely removed; certain risks will always exist. Market and
environmental risks are two examples of risks that must be constantly managed. Manual systems
rely on dedicated personnel to keep track of things. These specialists must ensure that all risk
factors are closely monitored. The risk management system in a digital environment monitors the
organization's whole risk framework. (THOMAS, 2022)

According to Malaysia's central bank, the impact of the COVID-19 epidemic on the
insurance business will be manageable, with insurers and takaful operators able to fulfil the
statutory capital adequacy levels. Bank Negara Malaysia (BNM) analyzed the market's resilience
against scenarios with higher-than-usual claims. COVID-related ex-gratia payments to
policyholders and increased claims for policies without a pandemic clause were among the stress
scenarios used. It also looked for a mild increase of up to 17% in the general insurance claims
ratio. (OLANO, 2021)

"Given their considerable financial investments, financial market volatility and the prospect
for rising bond yields will continue to impact on insurers' and takaful operators' earnings in the
future," according to BNM's first-half financial stability evaluation report. According to BNM,
several life insurers have incorporated pandemic-related underwriting variables into their policies,
such as queries about prospective policyholders' COVID-19 medical history and risk profile. The
greater risk has resulted in higher premiums or longer waiting times for some policyholders.
(OLANO, 2021)

There was a time when insurance brokers saw digital distribution as a danger to their
livelihood. Digital technology, in Rohit Nambiar, CEO of AXA AFFIN Life Insurance Malaysia’s
opinion, will be a compliment to agents rather than a threat. He gave an example of their AXA
eMedic medical card, which can be obtained online in 5 minutes and without a medical test. With
a price point as low as RM 37, Rohit joked that the commission was barely worth selling for
insurance brokers. (FONG, 2020)

Because of MCO, insurance agents can service more customers than they could before,
which requires them to move their interactions online. He forecasts that advising channels will
continue to be the leading contributors to the life and commercial insurance sales, as more

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advanced insurance markets around the world such as the United Kingdom and China.
Transactional items such as general insurance, motor insurance, and simpler products, he
believes, will become totally digital. (FONG, 2020)

To keep medical insurance affordable, most insurers and takaful operators decided to
postpone any previously planned re-pricing activities in 2020. Nonetheless, the central bank
expressed worry prior to the pandemic when insurers and takaful operators postponed re-pricing
procedures for too long as a competitive strategy. Because long delays are likely to result in
abrupt and unexpected premium adjustments to catch up with claims inflation, this is the case.
(MARKET, 2021)

"Policyholders who are unable to afford the higher rates may find themselves with fewer
options for replacement coverage if they grow older or their health status changes," Bank Negara
Malaysia (BNM), stated. To avoid this, insurers and takaful operators must establish an internal
policy to regulate the medical re-pricing process, which must include objective indicators and
criteria for triggering re-pricing, as well as the methodology for determining the new price.
(MARKET, 2021)

"The implementation of these policies must be monitored and reviewed to ensure that they
are applied consistently and fairly to policyholders." BNM said, adding that it is also reviewing
existing regulations to give insurers and takaful operators more flexibility in limiting the amount of
re-pricing required for smaller product portfolios that are more likely to experience greater claims
volatility. Nonetheless, with early signs of economic growth in 2021, some insurers and takaful
operators have just resumed re-pricing. (MARKET, 2021)

"These insurers and takaful operators have put in place mechanisms to assist medical
policyholders who may be having trouble keeping up with higher premium payments due to the
current unusual circumstances." The steps are designed to help policyholders manage their cash
flow without jeopardizing their protection, giving them time to recover financially," according to
BNM. (MARKET, 2021)

Policyholders have the option of keeping their premiums the same before they are re-
pricing or temporarily moving to a less expensive plan or product. Policyholders who choose this
option will be able to return to their former coverage after a set amount of time without having to
undergo any new or additional underwriting. This is in addition to the current option for affected
policyholders to defer premium payments for a period. (MARKET, 2021)

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 Medical claims inflation, which is a primary driver of re-pricing, remains a top priority for
BNM, in the long run, to ensure that private insurers and takaful operators may continue to provide
medical reimbursement coverage. "To achieve longer-term improvements in the delivery and
consumption of private healthcare services, numerous stakeholders, including healthcare
providers, regulators, insurers and takaful operators, support service providers, and end
customers, must work together." (MARKET, 2021)

Therefore, regarding to Covid-19 pandemic, insurers have taken step as preparation to

encounter the issue of high claim during pandemic. For policies in life insurance, there will be
underwriting related to pandemic. People are dangerously exposed to Covid-19 disease, and it is
important to include any medical data related to Covid-19 and the risk profile. Insurer and takaful
also decided to postpone their previous planned related to repricing to make it affordable due to
financial problem that impacted the policyholder during pandemic. It also can maintain the
number of policyholders.

What is the strategy(ies) can be taken by the insurance company to solve the challenges?

There are several of insurer management strategies and the first one is avoidance.
Avoidance is a risk-reduction approach that entails avoiding actions that could cause harm,
disease, or death. Smoking cigarettes is one such action that, if avoided, can have both health
and financial implications. Personal health management can benefit from risk management
methods utilized in the financial sector. (YU, 2021)

The acknowledgment and acceptance of a danger as a given is known as retention. This

accepted risk is usually viewed as a fee to help offset larger risks in the future, such as choosing
a cheaper premium health insurance plan with a higher deductible rate. The first danger is having
to spend higher out-of-pocket medical expenses if health problems emerge. If the problem grows
more serious or life-threatening, health insurance coverage will pay most of the costs over and
beyond the deductible. (YU, 2021)

Employer-based benefits, such as those that allow the employer to pay a portion of an
employee's insurance costs, are widely utilized to share risk. In essence, the risk is shared by the
company and any employees who take advantage of the insurance advantages. The theory is
that as more people share the risks, premium costs will fall in proportion. Individuals may find it

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beneficial to share risk by opting for employer-sponsored health and life insurance coverage
wherever possible. (YU, 2021)

Because the financial risks associated with health care are shifted from the individual to
the insurer, health insurance is an example of risk transfer. In exchange for a fee known as a
premium and a recorded contract between the insurer and the individual, insurance companies
assume financial risk. Lastly, loss prevention and reduction is a risk management strategy that
aims to reduce rather than eliminate losses. While acknowledging the danger, it remains focused
on containing and preventing the loss from spreading. (YU, 2021)

Following the third wave of the COVID-19 epidemic in Malaysia, the Life Insurance
Association of Malaysia (LIAM) and its member companies are happy to announce the extension
of further relief measures for affected policyholders until December 31, 2020. Cash payments,
hospitalization allowances, and lump-sum death or compassionate benefits are among the
additional relief measures available in the form of financial aid. A product is offered by an
insurance that allows policyholders to receive a 6-month premium relief of up to RM3,000 due to
retrenchment (LIAM, 2020)

As part of their financial help and support program for COVID-19-affected customers, six
life insurers have donated RM1 million each. Frontline medical professionals are eligible for a
special death benefit payout ranging from RM5,000 to RM15,000 from four life insurers. Cash
Relief ranging from RM1,000 to RM5,000 for COVID-19-positive consumers. Cash benefits and
allowance for hospitalization that range from RM60 to RM250 per day for up to 30 days. (LIAM,
2020)

Special lump-sum death and compassionate benefits ranging from RM5,000 to RM20,000
if the insured passes away. Additional relief efforts, according to LIAM President Loh Guat Lan,
are some of the urgent initiatives implemented by the various LIAM member companies to
mitigate the problems experienced by policyholders and their families. In support of the
government's efforts to aid the people in dealing with the pandemic, LIAM and its member firms
have banded together to adopt a variety of relief measures to assist pandemic-affected
policyholders and ensure that they may continue to earn a living. (LIAM, 2020)

For policyholders affected by the pandemic, LIAM and MTA have additionally offered a
90-day deferment period and a three-month no-lapse guarantee. If policyholders are unable to
pay their payments at this time, insurance and takaful businesses will continue to provide
insurance protection to them. Before they can make use of this relief provision, affected

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policyholders must apply to their insurance company for approval. This option will be available
from April 1, 2020, until December 31, 2020. (LIAM, 2020)

COVID-19 positive patients, those who are home quarantined (mandatory), and those who
have suffered a loss of income are all eligible for this compensation. We also help small and
medium businesses (SMEs) that have lost money because of the COVID-19 outbreak.
Retrenchment, fewer working hours, salary, or commission reductions for individuals; and loss of
company income for self-employed and SMEs are examples of events that lead to such loss of
income. (LIAM, 2020)

Tokio Marine Insurans (Malaysia) Berhad (TMIM) is a subsidiary of Tokio Marine Asia Pte.
Ltd. in Singapore, with Tokio Marine Holdings Inc. in Japan as its ultimate parent company. The
Tokio Marine Group is Japan's oldest and largest insurance group, with a history spanning more
than 140 years. The company operates in a wide range of industries, including non-life and life
insurance, international insurance, financial services, and other general business. To provide
consumers with safety and security, the Group operates a global network that covers 46 nations
and regions. (MARINE, 2021)

Fatberry.com, which was founded in 2017, is a prominent digital insurance platform in

Malaysia, offering a variety of flexible and affordable insurance products to the public. We provide
honest service to our consumers by providing coverage plans that are clear, customizable, and
simple to use. Our goal is to make purchasing insurance a simple and uncomplicated experience
for everyone. Fatberry.com attracts over 250,000 monthly visits and has just expanded into
Thailand. (MARINE, 2021)

In collaboration with Fatberry.com, Malaysia's top digital insurance platform, Tokio Marine
Insurans (Malaysia) Berhad (Tokio Marine) is happy to announce the launch of Malaysia's first
digital Covid-19 insurance coverage plan. Both companies hope to provide Malaysians with
comprehensive insurance coverage as soon as they test positive for Covid-19 through this
agreement. (MARINE, 2021)

For almost two years, the world has been in lockdown due to the latest pandemic, which
has resulted in business closures. Malaysia has entered the endemic phase, with the people
learning to coexist with Covid-19. With authorities easing Covid-19 limitations and more people
returning to work and social activities, full Covid-19 protection has become a must. (MARINE,
2021)

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 Tokio Marine teamed with Fatberry.com to create a Covid-19 coverage plan (Tokio Marine
VitalCover) targeted at Malaysians aged 16 to 55, recognizing a gap in the market for inexpensive
Covid-19 protection. After a positive Covid-19 test, the affected individual is guaranteed a
monetary payment of up to RM1,500 and hospital allowances of up to RM3,000. (MARINE, 2021)

Plan prices start at RM88 per year, or RM0.25 per day. Hospital allowances, Covid-19
allowances, and funeral expenditures are all included in Plan 1000. Asthma, Bronchitis,
Pneumonia, Influenza, H1N1, Bird Flu, Tuberculosis, and Lung Infection are among the
respiratory disorders covered by this plan. (MARINE, 2021)

"We're excited to partner with Malaysia's leading digital insurance platform, Fatberry.com,
to offer the Covid-19 coverage plan." Malaysians would be able to adjust to the new normal and
go about their daily lives knowing that they are adequately protected," said Tokio Marine CEO Mr.
Ng Hang Ming. (MARINE, 2021)

"In Malaysia, the Covid-19 coverage plan is the first of its kind. We collaborated with Tokio
Marine to create this low-cost, no-frills Covid-19, as part of our aim to provide Malaysians with the
finest insurance products possible. We've made it even easier by eliminating the need for a
medical exam." Fatberry.com's CEO, John Tan, stated. (MARINE, 2021)

According to the latest survey by Swiss Re, consumers and their insurance needs are
being pushed online by supportive government policies and a Covid-enforced surge in digital
activity. The study goes on to say that the expanding presence of e-commerce and digital wallet
apps opens prospects for new partnerships between insurers and digital platforms to close
Malaysia's US$47 billion health-insurance gap. (ASIA, 2021)

According to the report, many Malaysian customers are willing to try new apps, with usage
frequency and transaction volumes increasing over time. Insurance products that are sold through
e-payment and e-commerce platforms have a higher likelihood of success in Malaysia, according
to the findings. (ASIA, 2021)

Household decision-makers aged 18 to 65 who had utilized digital platforms at least once
in the three to six months prior to being polled were surveyed. E-commerce apps/websites,
payment/digital wallet apps, health-tracking apps, and connected commuter platforms are just a
few examples of digital platforms. (ASIA, 2021)

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 According to the poll results, digital platforms have a high penetration rate in Malaysia,
with 64% of respondents utilizing them at least once a week. E-commerce applications or
websites, such as Shopee in Malaysia, are the most popular, with 89% of respondents using them
at least once every three months, followed by digital payment apps, such as Touch n' Go. (ASIA,
2021)

There's also an increasing trend of getting insurance information and purchasing it online.
In Malaysia, traditional channels like as agents, brokers, and referrals are still the key sources of
insurance-related information. However, 67% of Malaysian respondents expressed an interest in
purchasing insurance through internet means in the future. (ASIA, 2021)

According to the report, Malaysian customers are more likely to provide general
information with insurers, such as age and occupation, as well as health information, such as
height and weight. There is a further increase of 20% of respondents who are willing to provide
such information if a premium discount is offered. (ASIA, 2021)

"By 2021, insurers will make it a priority to fine-tune their digital strategy in order to take
advantage of the opportunities provided by digital platforms." Not only can Malaysian insurers and
platform partners learn from Swiss Re's underwriting skills and risk management experience, but
they can also utilize their consumer insights to help more clients narrow." Loh concludes. (ASIA,
2021)

Thus, one of the strategies to encounter low number of client due to difficulty in meeting
them regarding to Covid-19 matters is to develop digital insurance. This can be easily access by
many people across the country. It can also save the clients energy, time, and money. People
take precautions steps to avoid getting Covid-19 disease by just going out when necessary, like
to buy life necessity. With this online insurance purchase, they can just access the insurance
information from home and feel safe. This will eventually be resulting in the higher number of
client than before.

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CONCLUSION

For the challenge, the loss of jobs caused by the Covid-19 pandemic has had a significant
impact on the insurance business. Because of the policyholder's financial difficulties, the
insurance company is under pressure to change the product's pricing so that they can afford it.
Next, due to the small number of staff in the marine insurance industry, there are delays. Most
marine insurance policies are affected by this issue because they did not cover the loss due to
the delays. Another issue is that medical insurance claims will be high in the future because of
people delaying treatment during the early stages of the pandemic in order to avoid contracting
Covid-19 sickness. As their health deteriorates because of delayed treatment, the cost of
treatment will be substantial.

Next, developing digital insurance is one of the techniques for dealing with a limited
number of clients owing to the difficulties in meeting them regarding Covid-19 issues. Many
people across the country can readily get this. It can also help customers save energy, time, and
money. People take care to avoid contracting Covid-19 illness by only going out when absolutely
required, such as to purchase necessities of life. They can check the insurance details from home
and feel comfortable with this online insurance purchase. This will eventually lead to a bigger
number of clients than previously.

Lastly, in the case of the Covid-19 pandemic, insurers have made steps to prepare for the
issue of large claims during the pandemic. There will be pandemic-related underwriting for life
insurance coverage. People are at risk of contracting Covid-19 disease, so any medical
information about the disease and the risk profile should be included. Due to financial issues that
impacted policyholders during the pandemic, insurers and takaful companies chose to postpone
their previous plans linked to repricing to make it more affordable. It can also keep the number of
policyholders the same.

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