The premium earnings dominance of Australian general insurers over their life insurance peers will reduce the sector’s potential claims exposure to the virus pandemic, according to London-based analyst GlobalData.

“The top 10 insurers generate 71% of their business from non-life, while the remaining 29% comes from life,” Insurance Analyst Deblina Mitra, who is based in Hyderabad, India, said in a brief commentary.

“Life insurers are vulnerable due to an expected rise in claims due to COVID-19 and difficult conditions for investment.”

Ms Mitra says the fall in retail sales will pressure credit lines, but other classes of business such as motor could see claims pressure eased as employees continue to work from home because of the lockdown measures.