Job cuts spark insurance policy cash withdrawals

Insurance firms have reported a sharp rise in policy cancellations and withdrawals by customers squeezed by the economic fallout from Covid-19, raising fears that many insurers could soon face liquidity challenges.

Top insurers confirmed a sharp rise in withdrawals and surrenders, majorly on life assurance and pension products — a trend linked to the coronavirus pandemic which has hurt many livelihoods through jobs losses and pay cuts.