The world’s top 100 most valuable insurance brands could lose as much as $100bn (£81bn) in brand value as a result of the Covid-19 crisis, a new report has revealed.
The insurance sector is set to be one of the most severely affected industries and faces a potential 20 per cent loss in brand value, according to analysis by Brand Finance.
The decline comes as the pandemic wreaks havoc on insurance firms both financially and reputationally, as they face a surge in coronavirus-related claims and risk angering customers if they refuse to pay out.
Despite this, Chinese giant Ping An has extended its lead as the world’s most valuable insurance brand, rising 20 per cent to $60.6bn.
Chinese brands make up half of the top 10 insurance companies, while Allianz and Axa also rank among the most valuable firms.
Beyond the insurance sector, the world’s 500 most valuable brands could face a hit of roughly $1 trillion as a result of the coronavirus outbreak.
“The Covid-19 pandemic is going to hit the insurance sector hard – Brand Finance has predicted that insurance brands could face up to a 20 per cent drop in brand value and undoubtedly, we are going to witness revenue slowdown for all brands across the sector,” said Brand Finance chief executive David Haigh.
“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.”
Airlines, retailers and restaurants were among the sectors considered most at risk as a result of the pandemic and could face a loss in brand value of up to 20 per cent, according to the report.
At the other end of the spectrum, food brands, household products, telecoms and utilities were all expected to be largely unaffected by the crisis.