Coronavir insurance is too risky: what employers are trying to insure

200 insured companies around 38 thousand. COVID-19 employees

Andrius Romanovskis, director of the Lithuanian Insurers Association, notes that on March 11, the World Health Organization declared a pandemic of the new coronavirus, which has not yet been canceled.

“A pandemic is an outbreak of a disease in which the disease spreads rapidly between people on different continents and in different areas at the same time. Generally, in global insurance practice, the risk of a pandemic is assigned to Force Majeure uninsured situations and events. The absolute majority of insurance companies both in the world and in Lithuania do not bear this risk, ”says A. Romanovskis.

According to him, this is mainly due to the fact that insurance companies cannot adequately assess the extent of possible damage due to the particularly rapid spread of the disease and its extremely wide geography. In the case of a pandemic, the spread of the disease is difficult to quantify, making it impossible to predict the extent of the risk.

“However, by seeing the interest of clients and understanding their need to feel safe in these circumstances, insurance companies in Lithuania are trying to assess the risk of a pandemic and offer one solution or another.”

So far, these are more pilot projects of limited duration or scope, since the risks of COVID-19 are completely new and today it is very difficult or impossible to accurately assess them, “says the head of the Association of Insurers, adding that They have included 19 risks in the list of their voluntary health insurance products and are offered by 3 Lithuanian insurance companies.

The interviewee notes that to manage the risks of insuring corporate employees against COVID-19, the insurance company applies a sum insurance system. This means that a specific flat rate benefit is agreed with the customer in case an employee becomes ill with COVID-19.

However, he notes that this insurance service is not a separate product. It is offered with a voluntary health insurance package for companies that care about the health of their employees.

“We have noticed that the need to insure our employees against COVID-19 has become especially relevant with the start of quarantine. During this period, insurance companies received many inquiries from companies about whether such an insurance service is offered, under what conditions is it possible to insure it, etc. After the abolition of quarantine, the need for insurance for COVID-19 employees and the number of inquiries decreased ”, A. Romanovskis shares his ideas.

According to him, during the entire period from the beginning of the quarantine, this insurance was purchased by some 200 companies and about 38 thousand people were insured. workers

Based on the interest in this product, Lithuanian insurance companies note that it is more relevant when the details of the company do not allow to organize work remotely and employees go to work every day, especially when they are in contact with clients.

COVID-19 insurance is primarily provided by employers whose field of production includes manufacturing, logistics, transportation, construction, and commerce. Insurers also receive inquiries from companies that provide security, information technology, veterinary, and agricultural services.

Due to excessive risk, the service is no longer offered.

According to Simonas Lisauskas, Director of the Lietuvos Draudimas Commercial Customers Department, Lietuvos Draudimas, in cooperation with Aon Baltic, offered COVID insurance for a limited time, and such service is no longer available. It was a pilot offer for companies to insure employees.

“COVID-19 insurance was developed in accordance with Aon Baltic’s international practice, the concept of such risk insurance is from the Italian market, and Lietuvos Draudimas helped adapt the product to the market in our country. The limited supply of the product was due to the fact that the spread of COVID is recognized as a pandemic. This means that the risk is unpredictable and the spread is difficult to calculate, ”says S. Lisauskas.

The interviewee points out that the risk of coronavirus is completely new, which makes it very difficult or impossible to assess it until now. Therefore, if these insurance offers will be updated or if a permanent product that covers the COVID risk will be created, it will be possible to respond in the future, taking into account the changing circumstances, says the representative of Lietuvos Draudimas.

According to S. Lisauskas, since the beginning of the quarantine, the companies have insured more than 36 thousand people with this insurance. About 150 companies of different sizes, from tens to tens of thousands of employees, took out insurance.

“Because of the interest in this product, we can conclude that it is relevant when the details of the company do not allow organizing work remotely and employees go to work every day,” he says.

Employees over the age of 60 and medical institutions are not covered.

Lietuvos Draudimas did not detail the terms and conditions of the COVID-19 insurance, since the offer is no longer valid.

A report previously distributed by the company stated that the service was valid for half a year and that the insurance packages consisted of two parts: benefits for days spent in the hospital and one-time benefits after hospitalization.

If a worker develops a COVID-19 infection and receives hospital treatment, a fixed insurance benefit is paid, as well as sick pay. Depending on the chosen package, the insured in Lithuania can receive a benefit of up to 4 thousand. euros Companies can choose between three different options for this insurance, the price of the service per employee ranges between 6 and 18 euros, according to the report.

The insurance offered by the insurance company also had some reservations. For example, COVID-19 only covered workers under the age of 60, and this offer did not apply to medical institutions.

Small and medium-sized companies in the country are more interested in insurance.

Another insurance company that offers employee insurance COVID-19 Vienna Insurance Compensation. The company’s service was used by 39 companies, which insured about 500 employees.

Linas Laugalis, director of products and risk management at Compensa Vienna Insurance Group, says clients have started applying for insurance to provide financial assistance in the event of a serious illness with COVID-19 as soon as it begins to spread worldwide .

“After assessing the situation since May, we offer companies the opportunity to insure their employees against this disease. Companies can enter into annual insurance contracts and choose the most acceptable insurance option among three different ones: the insurance benefit is fixed and , depending on the amount of the chosen premium, it reaches 500, 1000 or 1500 euros, ”says L. Laugalis.

The insurance coverage becomes effective 14 days after the signing of the contract. The benefit is paid in the event of an insured event, i. and. if the insured becomes ill and is hospitalized in a medical institution. The insured also receives the benefit if the hospitalization lasted one day, and only the documents confirming the diagnosis and the fact of hospitalization must be presented, the names of the interviewees.

“We speak to and consult all existing and potential customers who are interested in this service. We assess risk based on the health condition of insured employees and the possibility of infection.

In our experience, small and medium-sized companies operating in different sectors: security, information technology, commerce, construction, veterinary services, agriculture and others are more interested in the possibility of insuring employees against COVID-19 disease. ”Says a representative of Compensos.

The interviewee adds that residents also have the opportunity to insure against COVID-19.

Lithuanian railways insured 9,000. older workers are prohibited on their own initiative

More than 9 thousand. employees were insured against coronavirus by Lithuanian Railways (LTG). Tomas Digaitis, the company’s communications manager, says that LG also provides new employees with this insurance, and that the company over the age of 65 was self-insured – identical guarantees were provided with LTG funds.

“The insurance company did not insure employees over 65 years and 10 months on the day the contract was concluded. Therefore, in the event of an insured event, we guarantee similar conditions and benefits for such employees. We are an equal opportunity employer, so in such situations we do our best to ensure that all LTG Group employees receive the same care, ”says T. Digaitis.

According to the insurance conditions, the amount of the benefit for a day in the hospital is 30 euros. A one-time benefit of € 1,000 is also paid at the end of hospitalization. The employer would pay the same conditions to the older members of the LTG team.

According to the interlocutor, the insurance of COVID-19 employees is valid until October 16. As the day draws to a close, the company will decide whether to extend the ban. As they say, it will depend on the pandemic situation in the world and in Lithuania and on the advice of specialists.

“Even before the official quarantine in the country was announced, we made the decision to take complete care of the staff.” We strive to keep our people calm at least during the period of great uncertainty, at least on the issue of work, ”says T. Digaitis.

In addition to this insurance, LTG offers its employees the opportunity to work from home: “We have sent most of the corporate professionals to work from home: there are around 1,700 of those people in the LTG organization. All of them still work from home, we only create conditions for those who cannot find a quiet environment. ” work in regular offices, “says an LTG representative.

Promises not to leave the elderly in trouble

The parcel company Venipak Lietuva also insured all its employees and the subsidiary VP service. A total of 434 people.

According to Asta Raudonienė, Marketing Manager of the courier company Venipak Lietuva, the insurance is valid for 6 months. from the beginning of the insurance. She notes that the fall ban is still in effect.

“Our staff, especially the mails, were the people who worked on the front line without resting during the quarantine and risked their health to get the shipments to the intended recipients. So this ban was a natural solution in response to the current situation. and still existing, and at the same time we wanted to show our current and future employees that we care about each one of them and that we are ready to invest in both their skills and their health, “says A Raudonienė.

The insurance package purchased by Venipak stipulates that in case of COVID-19 infection and hospital treatment, the employee will receive a fixed benefit, which will reach up to 2000 euros in Lithuania and up to 1300 euros in Latvia.

Commenting on the condition of uninsured employees over the age of 60, she ensures that there are few such employees in the company, so no one will leave them in trouble.

“This particular COVID-19 insurance specifically defines the age of the insured, so that employees over the age of 60 were not insured. We only have ten of them, so if they get sick, we will not leave them in trouble, “emphasizes the company representative.

Insurance is valid until mid-fall.

Citadele Bank also took over its employees: it insured 1,100 employees in the Baltic States.

“During quarantine, about 90 percent of Citadele Bank employees in all Baltic countries worked remotely, but some of them continued to provide services directly, as we have to ensure the uninterrupted provision of financial services to customers” says Vaidotas Gurskas, head of the Lithuanian branch of Citadele Bank. .

Health insurance will cover the costs of hospital treatment from the sixth day, as well as the costs of intensive care. This special insurance complements the list of various paid health care services already provided to employees, says the bank chief.

“The ban is valid until October 23, but we will consider extending it later if necessary,” he added.

“We insure employees under the age of 65 because it is related to the terms of the insurance company. In addition, to ensure the safety of employees of this age, we guarantee the conditions for working from home, “says V. Gurskas.