The impact of the Covid-19 pandemic on the business interruption insurance demand in the United States

The article investigates the Covid-19 pandemic related changes in the demand for insurance services in the Unites States due to business interruptions by employing panel vector autoregression models to a dynamic panel data set of 50 states and District of Columbia for three periods of time: 01 Janua...

Descripción completa

Guardado en:

Detalles Bibliográficos
Autor principal:	Elena Nebolsina
Formato:	article
Lenguaje:	EN
Publicado:	Elsevier 2021
Materias:	Business interruption insurance Unemployment insurance Covid Google trends Catastrophes PVAR Science (General) Q1-390 Social sciences (General) H1-99
Acceso en línea:	https://doaj.org/article/8cb554fd458a4d909660e1c725df68cc
Etiquetas:	Agregar Etiqueta Sin Etiquetas, Sea el primero en etiquetar este registro!

id	oai:doaj.org-article:8cb554fd458a4d909660e1c725df68cc
record_format	dspace
spelling	oai:doaj.org-article:8cb554fd458a4d909660e1c725df68cc2021-12-02T05:02:49ZThe impact of the Covid-19 pandemic on the business interruption insurance demand in the United States2405-844010.1016/j.heliyon.2021.e08357https://doaj.org/article/8cb554fd458a4d909660e1c725df68cc2021-11-01T00:00:00Zhttp://www.sciencedirect.com/science/article/pii/S2405844021024609https://doaj.org/toc/2405-8440The article investigates the Covid-19 pandemic related changes in the demand for insurance services in the Unites States due to business interruptions by employing panel vector autoregression models to a dynamic panel data set of 50 states and District of Columbia for three periods of time: 01 January, 2004 to 28 June, 2020; 01 January, 2004 to January 21, 2020 (pre-Covid period); January 22, 2020 to June 28, 2020 (Covid-period). This paper is the first attempt to obtain estimates by applying Google Trends with a search key word “Business Interruption Insurance”. The data was collected and reduced to a single scale by US states within the widest possible time span. Google Trends Hits and Initial Claims for Unemployment Insurance Benefits are used as endogenous variables in the built models. In the constructed models, the impact of the exogenous variable New Covid Cases is compared with that of over US billion-dollar natural disasters. The impulse responses show a positive relationship between the Google Trends Hits and Initial Claims with the Covid-factor having a significant impact on the responses. The conducted analyses reveal that the demand for insurance services due to the Covid-19 outbreak in the United States can be expected to increase 2–6 times, with the total amount of the incurred costs for the economy due to the virus ranging from 0.3 to 7 percent of the US-2019 GDP. The results lay the foundation for recommending the insurance market participants to lobby for adoption of public-private protection schemes being able to secure a more efficient response to the pandemic-related losses that may occur in the future.Elena NebolsinaElsevierarticleBusiness interruption insuranceUnemployment insuranceCovidGoogle trendsCatastrophesPVARScience (General)Q1-390Social sciences (General)H1-99ENHeliyon, Vol 7, Iss 11, Pp e08357- (2021)
institution	DOAJ
collection	DOAJ
language	EN
topic	Business interruption insurance Unemployment insurance Covid Google trends Catastrophes PVAR Science (General) Q1-390 Social sciences (General) H1-99
spellingShingle	Business interruption insurance Unemployment insurance Covid Google trends Catastrophes PVAR Science (General) Q1-390 Social sciences (General) H1-99 Elena Nebolsina The impact of the Covid-19 pandemic on the business interruption insurance demand in the United States
description	The article investigates the Covid-19 pandemic related changes in the demand for insurance services in the Unites States due to business interruptions by employing panel vector autoregression models to a dynamic panel data set of 50 states and District of Columbia for three periods of time: 01 January, 2004 to 28 June, 2020; 01 January, 2004 to January 21, 2020 (pre-Covid period); January 22, 2020 to June 28, 2020 (Covid-period). This paper is the first attempt to obtain estimates by applying Google Trends with a search key word “Business Interruption Insurance”. The data was collected and reduced to a single scale by US states within the widest possible time span. Google Trends Hits and Initial Claims for Unemployment Insurance Benefits are used as endogenous variables in the built models. In the constructed models, the impact of the exogenous variable New Covid Cases is compared with that of over US billion-dollar natural disasters. The impulse responses show a positive relationship between the Google Trends Hits and Initial Claims with the Covid-factor having a significant impact on the responses. The conducted analyses reveal that the demand for insurance services due to the Covid-19 outbreak in the United States can be expected to increase 2–6 times, with the total amount of the incurred costs for the economy due to the virus ranging from 0.3 to 7 percent of the US-2019 GDP. The results lay the foundation for recommending the insurance market participants to lobby for adoption of public-private protection schemes being able to secure a more efficient response to the pandemic-related losses that may occur in the future.
format	article
author	Elena Nebolsina
author_facet	Elena Nebolsina
author_sort	Elena Nebolsina
title	The impact of the Covid-19 pandemic on the business interruption insurance demand in the United States
title_short	The impact of the Covid-19 pandemic on the business interruption insurance demand in the United States
title_full	The impact of the Covid-19 pandemic on the business interruption insurance demand in the United States
title_fullStr	The impact of the Covid-19 pandemic on the business interruption insurance demand in the United States
title_full_unstemmed	The impact of the Covid-19 pandemic on the business interruption insurance demand in the United States
title_sort	impact of the covid-19 pandemic on the business interruption insurance demand in the united states
publisher	Elsevier
publishDate	2021
url	https://doaj.org/article/8cb554fd458a4d909660e1c725df68cc
work_keys_str_mv	AT elenanebolsina theimpactofthecovid19pandemiconthebusinessinterruptioninsurancedemandintheunitedstates AT elenanebolsina impactofthecovid19pandemiconthebusinessinterruptioninsurancedemandintheunitedstates
_version_	1718400723358580736

The impact of the Covid-19 pandemic on the business interruption insurance demand in the United States

Ejemplares similares