London (AFP)

Faced with the spread of the new Chinese coronavirus and the disruption it causes, businesses and tourists will find it difficult to obtain compensation from insurers who often refuse to cover epidemics of this type.

While it is difficult at this stage to assess the economic impact of the virus, which now claimed more victims in China than SARS in the early 2000s, it is already disrupting the plans for the number of holidaymakers and the chains supply to industrialists.

But getting compensation will be an obstacle course and will play out in the details of contracts, especially for companies engaged in several territories.

For example, it is very unlikely that the insurance taken out when buying a trip covers epidemics.

Instead, tourists will need to contact their credit card providers or tour operators for reimbursement in the event of cancellations or medical costs.

For companies, especially airlines that have stopped or reduced service to China, there could even be no recourse, warns Clarissa Franks, a risk management officer with London broker Marsh.

"The devil is really in the details," she told AFP, stressing that certain provisions in insurance policies can cover communicable diseases, but in general epidemics like the coronavirus are excluded.

- "Talk to your insurer first" -

The new virus has already infected more than 20,400 people and the World Health Organization (WHO) has classified the epidemic as a "public health emergency of international concern".

The famous insurance market Lloyd's of London has not yet seen a burst of activity from its members who would like to cover their exposure, report two sources in the famous London market.

However, the SARS epidemic that started in China in 2002 can give an idea of ​​the possible conflicts that are emerging between insurers and their customers.

For the tourism sector alone, the impact of SARS had been estimated at between 30 and 50 billion dollars by the World Travel and Tourism Council (World Travel and Tourism Council).

But at the time, the Chinese economy weighed only 5% of gross domestic product (GDP), against 20% now, not to mention that the Chinese have become the world's most frequent travelers.

The insurance industry will be "very attentive," according to Malcolm Tarling, spokesperson for the Association of British Insurers (ABI, Association of British Insurers).

"If someone is traveling (to China, editor's note) not following government guidelines, then a lot of insurance will not be valid. If you think your trip is essential, you should talk to your insurer first ", he said to individuals and businesses.

British heavyweight Aviva insurance explains to AFP that customers must have special coverage for "travel disruptions" in order to be sure of being reimbursed.

"We are monitoring the situation closely but so far the overwhelming majority of requests are related to customers traveling to and from China", more than worried companies, said a spokesperson for the group.

The German giant Allianz believes that individuals must first contact their airline or travel agency, before their insurer.

For companies, contagious diseases are covered by specific policies, the cost of which may have discouraged subscribers.

"Traditional insurance cannot cover everything and non-traditional insurance tends to be very expensive and requires a long process to determine the needs of each business," says Franks.

© 2020 AFP