Name: CÉSAR MALAGUTI ANDRADE SOARES
Publication date: 17/03/2023
Examining board:
Name |
Role |
|---|---|
| GUILHERME ARMANDO DE ALMEIDA PEREIRA | Presidente |
| LARISSA BARBOSA CARDOSO | Examinador Externo |
| RENATO NUNES DE LIMA SEIXAS | Examinador Interno |
Summary: The objective of the project is to analyze the impact of the SARS-CoV-2 on the insurance market in the states of Brazil. Until July 2022, the country concentrates more than 10% of deaths caused by the virus in the world, even though it has 3% of the total population. As a result, several sectors and individuals are impacted in an extreme way. The insurance market is among the main holders of investment assets in the financial area in the world, and its consumption is linked to numerous factors. As a distinct sample in the modern society, monthly panel data with fixed effects is used to understand the behavior of the Brazilian insurance market during the pandemic, analyzing the pandemic impact of confirmed cases and deaths in Brazilian states in three different empirical models : i) measure the influence of the pandemic on four dependent variables that indicate market development; ii) estimate the model considering interactions between state dummy variables and COVID-19 severity variables, to capture possible differences in impact between states; iii) examine the effects of COVID-19 on different groups in the insurance market. The results suggest that, despite the existence of negative shocks to revenues, there was an increase in direct premiums, in the density and depth of the insurance market, in addition to an increase in the concern of individuals in the process. The conclusion drawn from this study was that confirmed cases of the SARS-CoV-2 virus seem to have, for the most part, a positive impact on states and economic market groups, while deaths caused by the infectious disease generally have a negative impact on the market, indicating the difficulties caused by the lethality of the virus.
