Major insurers shares down 7% as markets fall in biggest one day dive in over a decade
Coronavirus sparked mass panic across stock markets today, with insurers today caught up in the storm.
British insurers Direct Line (-4.5%), RSA (-3.86) and Admiral (-4.15%) were hit hard, but the biggest fallers were European insurers, with AXA and Allianz down 7%.
The FTSE plunged 8.5%, the biggest fall since the credit crunch.
Investors are panicking because they fear coronavirus will cause a worldwide recession.
Fears over a bloodbath in the oil market are also worrying investors.
Major oil nations Saudi Arabia and Russia have been hit hard by the falling price of oil, as investors bet on lower demand from the coronavirus recession.
A failure among oil nations to limit output and stabilise prices has seen the price of oil plunge lower than $30 a barrel at one point.
Back in the UK, Aviva has banned all non-essential meetings.
The UK’s largest general insurer has said coronavirus will not be covered under standard business interruption.
Elsewhere, claims departments have been warned they face unprecedented challenges as call centres may have to be shut down when the virus spreads.
One area to benefit so far has been travel, with coronavirus triggering a sales boom.
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