Risk Consequences of Coronavirus


The outbreak of the Coronavirus has captured all our attention and as yet we still do not have a clear view of what is going to happen in the future. The uncertainties of the ability for the virus to be largely contained with China remain, and the prospect of it spreading aggressively in other countries still exists.  Thankfully the New Zealand government followed the quarantine measures introduced by many countries, including Australia and the US, which stopped all flights to and from mainland China.

So what should you do now from a risk management perspective?

The potential impact of the Coronavirus started me thinking about the reason people have for owning personal insurance policies. Basically it is to provide financial certainty if something catastrophic occurs that their assets and their families are safe and protected from life’s curveballs.

I see the Coronavirus as one of those potential curveballs that is totally outside our control and could be devastating. So, I set out a series of questions for you to answer to check if you are prepared for this now ‘known’ event that may come our way.

  • Will you leave your family with a secure financial position if you die next week?
  • What happens if you cannot work for between 3 and 6 months due to illness. Will your employer continue to pay you or can your business afford to pay for your replacement?
  • Are you financially prepared if you suffered a major trauma or critical illness?
  • What would happen if you were diagnosed as being permanently disabled and no longer able to ever work again?
  • Are you prepared financially for a non-urgent elective surgery costing $30,000  or more?

Coronavirus and its effects should motivate you to revisit your insurance portfolio to ensure that you have the correct levels of insurance, funded appropriately, correct ownership and that you are confident that the insurer has the financial capacity to pay.

It is extremely important that the insurance company managing and underwriting you and your family’s financial future, has the international strength and financial capacity to meet catastrophic claims conditions. KSL’s recommended panel of insurers do.

Your Preparedness Action Plan

Having been a survivor of both a heart attack and cancer I can certify that “I am financially prepared”. Are you?

My intention in this letter is not to create alarm; rather it is to urge you to make sure you are prepared for whatever may happen.

Contact me on telephone 021 240 4540 or email me at kevin@ksl.co.nz to arrange a suitable time to catch up and review your insurance program.

I look forward to working with you.

Kind regards

KSL Insurance Limited

Kevin Seque AFA
FSP 108805
Insurance and Audit Specialist