COVID-19 to cost global insurance industry $203B
Lloyd's of London insurance market forecast calculated on Thursday that the COVID-19 pandemic will cost the global insurance industry approximately $203 billion. The company stated that "the estimated 2020 underwriting losses covered by the industry as a result of COVID-19 are approximately $107 billion, on par with some of the biggest major claims years for the industry, such as when catastrophic windstorms have struck. Importantly, these natural catastrophes were geographically contained events, occurring over the course of hours and days - vastly different in nature to the global, systemic and longer-term impact of COVID-19."
It added that "unlike other events, the industry will also experience falls in investment portfolios of an estimated $96 billion, bringing the total projected loss to the insurance industry to $203 billion."
John Neal, CEO of Lloyd's, said: "The global insurance industry is paying out on a very wide range of policies to support businesses and people affected by COVID-19. The Lloyd's market alone is currently expected to pay claims amounting to some $4.3bn, making it one of the market's largest pay-outs ever."