By Anoop Khanna
The world’s top 100 most valuable insurance brands could lose up to $100bn worth of brand value as a result of the COVID-19 pandemic.
The latest issue of Brand Finance Insurance report Insurance 100, 2020 shows the insurance sector is one of the most heavily impacted industries globally and could face a potential 20% loss in brand value due to the current pandemic.
The analysis says COVID-19 is undoubtedly going to wreak havoc on the sector in the coming year – both financially, as brands that already operate on wafer-thin margins are being drowned in claims, and reputationally, as brands which refuse to pay out COVID-19-related claims are risking potential irreparable damage.
Brand Finance CEO David Haigh said, “The COVID-19 pandemic is going to hit the insurance sector hard … insurance brands could face up to a 20% drop in brand value and undoubtedly, we are going to witness revenue slowdown for all brands across the sector.
“Some brands should, however, fare better in terms of their margins, including the property and casualty insurance brands, as fewer such claims are expected during the far-reaching and ongoing lockdown period,” said Mr Haigh.
The report said, “Ping An of China has recorded an impressive 20% brand value growth to $60.6bn, extending its lead further as the world’s most valuable insurance brand. The brand’s commitment to expanding its portfolio and offering in the non-insurance and digital disruption space is truly setting it apart from its peers.”
Ping An is also the ninth most valuable brand in the world, according to the Brand Finance Global 500 2020 report.
With Ping An, 11 other Chinese insurance brands also feature in the top 100 insurance rankings for this year. With their total brand value reaching $151.5bn, China is home to the most valuable insurance brands in the world. With all 12 brands featuring in this year’s rankings were also present in the 2019 ranking too.
Besides the 12 insurers from China, there are 10 more from Asia in the top 100 insurance brands.
Asia Insurance Review