Insurance market hit
Lloyd’s of London facing record payouts over virus
The pandemic is causing rising claims across the world
Lloyd’s, the world’s biggest (re)insurance market, today revealed that it is facing record payouts in the range of $3bn to $4.3bn to its global customers as a result of the far-reaching impacts of COVID-19.
This is on a par with 9/11 in 2001 and the combined impact of hurricanes Harvey, Irma and Maria in 2017, all of which led to similar pay outs by the Lloyd’s market.
These losses could rise further if the current lockdown continues into another quarter.
Lloyd’s believes that once the scale and complexity of the social and economic impact of COVID-19 is fully understood, the overall cost to the global insurance non-life industry is likely to be far in excess of those events.
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.
“What makes COVID-19 unique is the not just the devastating continuing human and social impact, but also the economic shock.
“Taking all those factors together will challenge the industry as never before, but we will keep focused on supporting our customers and continuing to pay claims over the weeks and months ahead.”