In Europe, the spread of coronavirus [4] is weighing on the financial sector. In recent days, the stocks of bank and insurance companies have declined by more than 11% on the STOXX Europe 600 index.
For its part, the overall index fell by 8%. Banking institutions could suffer the damage caused by coronavirus on their customers' activities. The most vulnerable institutions are those that are undergoing restructuring plans or whose Asian business represents an important portion of the portfolio. As for the insurance market, no crisis is foreseen yet. However, an atmosphere of anxiety is prevailing over the industry.
Specialists fear that the economic slowdown could lead to a drop in the premium income. Life insurance, for its part, is spared as the scenario of a sharp increase in the mortality rate is very unlikely.