Looking At The Bright Side: Positive Effects of the Pandemic

Things are not amazing by any means: tens of thousands of Americans have died because of the coronavirus, millions are without jobs, families, and friends remain separated, and daily life has yet to return to normal. The world is still very much in the throes of a pandemic, but there are silver linings, slivers of hope and goodness amid the uncertainty and negativity. It is important to try to look at the bright side.

Quality Family Time

While spending twenty-four hours a day with the same people can be difficult, social distancing and quarantine provide us with a unique opportunity to enjoy quality time with our loved ones. Plan fun activities to do with your family or simply make an effort to be grateful for this time together. Your family members will look back at this time and remember it for the rest of their life. Create positive memories together.

People Are Saving More Money

According to the Bureau of Economic Analysis, Americans more than doubled their savings in March. With little travel and entertainment options on which to spend money, consumers have instead saved or redirected that money to things like groceries and home improvement projects.

More Time for Yourself During Quarantine

While you do not need to invent calculus in quarantine like Issac Newton, the extra time at home allows us to explore our personal passions and focus on ourselves. Whether it’s honing your cooking skills, taking up a new instrument, or embarking on a fitness journey, there are countless productive and fulfilling ways to fill your days.

Homes Are Getting Cheaper

Home prices have dropped in expensive markets like New York City, according to the investment bank UBS. Coupled with low mortgage rates, hopeful homebuyers are in luck after years of rising prices. UBS also found that San Francisco, Miami, and Chicago saw slight declines in median housing prices.

Getting Things Done

Many of us have a checklist of things we have been meaning to do for years, and now we finally have the chance to do it. Carve out time to accomplish something, whether it is going through that old closet or cleaning out the garage. It can be a great feeling to accomplish long-dreaded tasks.

Cleaner Air, Clearer Water

At the beginning of the pandemic, we saw a dramatic drop in greenhouse gas emissions as factories halted production and life went remote. The air has not been this clean in decades, according to research published in the journal Nature Climate change. Previously overpopulated waterways, such as the canals of Venice, turned clear enough to see fish again.

While isolation indeed has its challenges, there are some positives. All this time at home makes us appreciate social interaction, travel, our loved ones, and all other activities and people that we are missing out on, all the more.

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Commercial P&C Insurance

Commercial Office Space Set for a Strong Comeback

The sustained increase in demand for office space across the nation since late 2022 suggests that the market has moved past its lowest point, according to insights from the real estate technology platform, VTS. Demand for office space began to rise in late 2022 and continued into early 2023. Since then, the office market has experienced a period of stability and growth, supported by favorable economic factors, indicating a market rebound. This conclusion is drawn from the VTS Office Demand Index (VODI), which tracks unique new tenant tour requests for office properties in key U.S. markets. The VODI serves as an early indicator of future office leasing activity. According to the index, demand for office space has grown consistently over the past 12 months, closing the second quarter with a 17% year-over-year increase and a 34% rise from the VODI’s lowest point in December 2022. A significant shift in office-based employment patterns further supports the belief that demand for office space has stabilized. After reaching its peak in August 2022, office-based employment declined by 3.9% in early 2024. However, this trend has since stabilized, and employment growth has remained steady. Additionally, a recent decrease in work-from-home rates has fueled the renewed demand for office space. “They say you can only recognize a market bottom after it has passed, and the office space market is no exception. Following what we now see as the bottom, the national demand has gradually increased, though it remains susceptible to economic challenges,” said Nick Romito, CEO of VTS. “However, the growth observed in VODI over the past 18 months, coupled with positive trends in the office-using workforce, suggests that the market has reset, and the worst is behind us.” It’s important to note that this national trend does not impact all local markets equally. Cities like Los Angeles and New York City have seen healthy growth in office space demand, while markets such as San Francisco and Washington, D.C., have experienced prolonged stagnation. In Los Angeles, office space demand surged in the second quarter, briefly surpassing pre-COVID levels, driven by an increase in the average size of office spaces sought by tenants. New York City followed a similar overall pattern, though with some softness in the second quarter. Conversely, San Francisco’s demand for office space remains unpredictable, largely due to its tech-focused workforce, which continues to favor remote work more than other industries. “Markets heavily dependent on the tech sector, like San Francisco and Seattle, are on a markedly different post-COVID recovery path compared to more diversified markets like Los Angeles and New York City. It may take some time before we see office demand in San Francisco and Seattle return to pre-COVID levels,” added Ryan Masiello, Chief Strategy Officer at VTS.

Cyber Liability

Global IT Outage Puts Business Interruption Insurance in the Spotlight

In July, a global IT outage had a significant impact on business interruption insurance policies, overshadowing the effects on cyber insurance coverages. “This incident wasn’t a result of a malicious attack, which is why typical cyber insurance policies may not have been activated,” explained Peter McMurtrie, a partner in West Monroe’s insurance sector, in an interview with PropertyCasualty360.com. “Where coverage was applicable, factors like deductible amounts, waiting periods, and coverage limits played a critical role in determining the extent of exposure,” McMurtrie noted. “Standard policies for small businesses were less likely to offer coverage, while more complex policies for mid-sized companies and Fortune 500 corporations may have included broader triggers for non-malicious outages caused by third-party software issues.” The outage was triggered by a software update on July 19, 2024, by cybersecurity firm CrowdStrike, which affected organizations worldwide using Microsoft Windows. This interruption had far-reaching consequences, including disrupting hospital systems, media outlets, financial institutions, delaying thousands of flights, and halting daily business operations. McMurtrie emphasized that while the initial impact of the outage was similar for both large and small businesses, the ability to recover operations and whether insurance covered the loss of business income varied. “Larger companies are more likely to have advanced disaster recovery plans that ensure service redundancy following unexpected outages,” he added. “Their insurance programs also tend to cover a wider range of incidents.” According to Microsoft, the CrowdStrike update error affected over 8.5 million Windows devices globally. The incident highlighted the interconnected nature of our global ecosystem, including cloud providers, software platforms, security services, and their clients. “It’s a stark reminder of the importance of prioritizing safe deployment and disaster recovery across the tech industry,” the company said in a blog post. McMurtrie pointed out that the outage’s widespread impact was largely due to its effect on organizations that are critical to societal infrastructure—sectors like agriculture, airlines, banking, energy, government, healthcare, manufacturing, and retail. “Insurance companies base their risk appetite on their ability to understand and price risks appropriately. This becomes increasingly challenging with emerging threats,” he said. “However, I anticipate that insurers will respond by clarifying policy language, refining risk selection criteria, and possibly developing new products specifically designed for this evolving exposure.”

Looking At The Bright Side: Positive Effects of the Pandemic