The global insurance industry could lose more than $ 200 billion due to the coronavirus, according to Lloyd's of London.
The global insurance market said on Thursday that it pay between $ 3 billion
and $ 4.3 billion to customers, making the pandemic one of the most significant loss events in its 330-year history.
This number is already on par with Sept. 11 and combined payments from hurricanes Harvey, Irma and Maria in 2017, said Lloyd's, adding that the overall cost to the non-life industry would be "much more high "than these events. historical.
The market estimated that underwriting losses covered by the industry as a whole from Covid-19 had already reached $ 107 billion, on par with 2017 and 2005, which experienced three catastrophic natural disasters: Hurricanes Katrina, Rita and Wilma.
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However, an expected drop in the value of investments held by insurers could bring the overall total cost to the industry to $ 203 billion, said Lloyd's.
"The global insurance industry pays a wide range of policies to support the businesses and individuals affected by Covid-19," said John Neal, CEO of Lloyd's of London.
"What makes Covid-19 unique is not only the continuing devastating human and social impact, but also the economic shock," he added.
Insurance stocks fell Thursday, led by Prudential
PRU
-5.31%
which recorded a 24% drop in sales in its main Asian market in the first quarter when Hong Kong and China implemented blocking measures.
Shares of rival British insurers Aviva
A V,
-1.61%,
Hiscox
HSX
-5.91%,
Direct line
DLG,
-2.51%
and RSA
RSA,
-1.54%
It also suffered losses as investors digested the Lloyd's of London report.
Hiscox faces lawsuits from groups representing hundreds of British businesses, especially pubs and bars, for failure to pay business interruption insurance after the government ordered them to close. The insurer said its main wording "does not provide cover for trade disruptions resulting from general measures taken by the British government in response to a pandemic", in a statement last month.
Lloyd's said on Thursday that he was considering a "Recover Re" insurance plan that offers "post-event" insurance to help businesses recover from the pandemic.