The top 100 most valuable insurance brands in the world are at risk of losing up to $100bn in brand value as a result of the Covid-19 pandemic, according to a new study.
The Brand Finance Insurance 100 2020 report says the insurance industry has been hit particularly hard by the global health crisis, potentially wiping out 20% of brand value for these companies.
Parts of the industry have been accused of failing to fulfil policies for affected customers but firms that have scored well displayed a willingness to get involved in community responses to the coronavirus.
Brand Finance CEO David Haigh said: “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% 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.”
How has Covid-19 affected insurance brand value in China?
Each insurance firm has had its brand value impacted in different ways.
Ping An, the most valuable insurance firm according to Brand Finance, actually experienced 20% growth in its brand value since since 1 January this year.
At $60.6bn, it is also identified as the ninth most valuable brand in the world across all industries.
The impact from Covid-19 was offset by its Good Doctor service. The health technology solution signed up 315 million registered users and close to 70 million active monthly users by the end of 2019.
Chinese insurance companies fared well overall, with five appearing in the top 10 most valuable brands, and 12 in total in the list of 100.
Furthermore, many of the Chinese firms in the top 10 recorded rises in brand value, notably AIA (up 17% to $18.2bn), CPIC (an increase of 31% to reach $14bn) and PICC (a 20% jump to $11bn).
However, China Life saw its brand value drop 10%, to $23.6bn.
Poste Italiane: The strongest insurance brand?
Alongside valuations, Brand Finance assesses the relative strength of brands using a scorecard of metrics, such as marketing investment, stakeholder equity, and business performance.
The report deemed Italy-based Poste Italiane the strongest brand this year.
While its brand value dropped 6% to $6.7bn, the company received a Brand Strength Index score of 85.5 out of 100.
During the Covid-19 pandemic, it introduced pension withdrawals in alphabetical order to avoid crowds, worked with the nation’s law enforcement and assisted with mask distribution.
Haigh added: “Poste Italiane’s perfect combination of ubiquity, accessibility, world-class product offering, excellent reputation and transparency makes the brand the strongest insurance brand globally.”