90-Second Read: Insurers forced to rethink cover amidst Ebola, Andes Hantavirus outbreak

Recent outbreaks of the Ebola virus and Andes Hantavirus are forcing the insurance industry to re-evaluate how it covers rare infectious diseases. AM Best reports that insurance companies are currently well-prepared to handle the direct financial impacts of these outbreaks. Additionally, the Ebola spike comes as several African nations face rising debt burdens alongside a decline in international donor funding for health crises.

They have also redrafted contracts to eliminate ambiguous language regarding coverage gaps and systemic vulnerabilities. In a separate report, the Asia-Pacific individual health insurance market is projected to grow at a compound annual rate of 5.91% through to 2030, driven by a sharp rise in post-pandemic health awareness and rising medical costs. Consumer data highlights a significant shift in public attitude toward comprehensive medical coverage following the COVID-19 pandemic.

However, AM Best said these health crises could still slow down the global economy at a time when geopolitical conflicts are already driving recession fears. As a result, insurers are being advised to regularly stress-test their portfolios against unexpected, non-modelled risks rather than relying purely on geographic diversification. According to Grand View Research, the regional industry was valued at $1.63t in 2022.