Specialist or niche underwriters may be hit with “outsized losses” from increased claims linked to the coronavirus pandemic, S&P Global Ratings has warned.

These include providers of travel, credit, bond, mortgage and event cancellation contingency policies, the ratings agency says in a report.

S&P says border closures, travel restrictions and other measures the world has taken to curb the spread of the novel coronavirus will lead to a spike in claims for these specialist business lines.

None of these lines are material in the global context but “some niche or specialist writers focusing on these lines of business will suffer outsized losses,” S&P says.

“The insurance-related risks, such as increased claims and top-line pressures, are less significant risk factors for the industry as a whole.

“That said, specialist writers of loss-affected lines and those dependent on face-to-face sales could experience earnings deterioration or reduced market presence, respectively, as a result of the pandemic.”

It says commercial insurers will most probably have limited exposure as the business interruption policies they issue usually contain the standard exclusions for virus-related events. Also, most standard business interruption policies only cover losses from physical events.

S&P has maintained its stable outlook for global reinsurers, US property and casualty insurers and primary non-life insurers in the Asia Pacific.