Many businesses and non-profit organisations have reduced their activities or closed over the last few months.

There have been many news reports about the plight of owners and operators of restaurants, hotels, retail shops, event companies, tourist-related companies, religious organisations and many other enterprises that are linked to the health of our economy.

Are general insurance companies in Singapore adopting any measures to mitigate the financial losses of their corporate customers?

Insurance premiums - which are a charge for risk exposure - are either directly or indirectly linked to variables such as payroll, revenue, number of events and other indicators that are normally a function of the volume of activities and business.

One can reasonably surmise that risk exposure of many companies is reduced in the current circumstances, largely due to the coronavirus.

Insurance premiums constitute only a small proportion of the entire budget of most companies. However, in times like these, every cent counts. Insurers should consider a retroactive rebate for companies that have closed or have reduced their activities due to the pandemic.

The General Insurance Association of Singapore, which represents most of the insurance companies here, should coordinate such an effort.

Also, insurance brokers who represent customers who fall into this category should push insurers for refunds and reductions of premiums on renewals.

Tony Seah Eng Wah