Impact of COVID-19 on the Company’s operations

The economic condition due to global outbreak of COVID-19 have adversely affected businesses worldwide during the year. The Company is also impacted due to lower revenue and delay in collecting premium. Investment income which was negatively affected during the year has been appreciated by the year-end.

Insurance Risk

The Company underwrites medical and business interruption policies. With regards to these policies, the Company has in place pandemic and infectious disease policy exclusion in place. The Company has evaluated all business interruption policies in force for which the Company may have to incur claim payouts. As a result of initial examination of the policies, the Company determined that these will not have a material impact in relation to the net claims paid due to lower retention levels of the Company. Furthermore, the Company has been able to retain major customers during the year and has generally witnessed renewals and new business across some major line of business.

Credit risk

The Company attempts to control credit risk by monitoring credit exposures, limiting transactions with specific counterparties and continually assessing the creditworthiness of counterparties.

Liquidity risk

The Company continues to monitor and respond to all liquidity requirements that are presented. The Company continues to calibrate stress testing scenarios to current market conditions in order to assess the impact on the Company. As at the reporting date, the liquidity position of the Company remains strong and is well placed to absorb and manage the impacts of this disruption.

Business continuity plan

The Company has remained fully operational throughout the period and has put in place effective business continuity and remote working plans enabled by the right technologies and systems to ensure uninterrupted services to customers and the operations. The outbreak has not caused any significant delays in policy issuance and claims settlements. The Company will continue to monitor the reverberations of COVID-19, if any, on its customers and operations and will take further action as needed. The steps taken by the Company to estimate the impact of COVID-19 and the judgments applied by management in assessing the value of assets and liabilities as at 31 December 2020 includes both quantitative and qualitative criteria such as risk profiling and actuarial analysis. Such analysis has enabled the Company to timely and accurately identify its exposure although these are subject to significant judgment due to the rapidly changing dynamics of COVID-19.