COVID-related losses to the insurance sector are expected to be the largest to date.
Coronavirus-related losses to the insurance sector are expected to be the largest to date, according to British insurance and reinsurance Lloyd’s of London.
Reporting from CNBC states that, in a broader economic assessment report on the impact of Covid-19 for the non-life insurance industry, Lloyd’s estimated that the 2020 underwriting losses covered by the industry will hit $107 billion. Lloyd’s of London CEO John Neal told CNBC Thursday that any form of lockdown extending beyond the second quarter would likely result in between $1 billion and $2 billion more claims on top of its current $4.3 billion estimate. “I don’t actually think we will really know the full cost of Covid-19 maybe for up to two years,” Neal told CNBC’s “Street Signs Europe.” “So at the moment, we are involved in insuring the clinical trials for the vaccine, so there are over 70 trials taking place as we speak, right up to ideas to saying ‘how do we solve the second wave of the pandemic?’” he explained.
“In addition, unlike other events, the industry will also experience falls in investment portfolios of an estimated $96bn, bringing the total projected loss to the insurance industry to $203bn,” the report adds.