Another important implication of the avian flu pandemic could be for the insurance sector. As emphasized by the Financial Stability Forum, a flood of claims might strain the capacity of the global insurance and reinsurance sectors.
Insurers are exposed to the effects of a pandemic through a number of business lines, including such risks as business interruption, health, disability, medical malpractice, workers’ compensation, and life insurance. Estimates of the impact of a global flu pandemic on the insurance industry vary widely.