Lloyds of London, the world’s largest insurance retailer, expects the industry to shed $ 203 billion in losses this year as a result of the corona crisis. This is partly due to claims and partly due to losses on investments.
Lloyds calculated that insurers will receive up to 107 billion euros in insurance claims this year. This amount equals the claims made after the most catastrophic hurricanes in recent years. If the outbreak of the virus is not curbed quickly, this amount will increase further.
According to Lloyds, the cost will increase even more if the extent and complexity of Covid-19’s social and economic impact is fully understood.
At least 4.2 million people worldwide are infected with the virus and nearly 300,000 people have died. All told, the corona virus poses the biggest challenge ever for the insurance industry. The outbreak has already caused a deluge of claims from events that were canceled, businesses that stalled and other costs.
The global recession may also hinder premium payments because households or businesses can no longer afford to pay those costs. Many European insurers have recently suspended dividends and canceled earnings expectations for this year.