Lloyd’s sees global pandemic insurance losses above its estimates

(Reuters) — Lloyd’s of London Chairman Bruce Carnegie-Brown said on Wednesday global insurance losses from the COVID-19 pandemic in 2020 will be higher than previously estimated, with 16 different business lines facing claims at Lloyd’s.

Carnegie-Brown told the Reuters Events Future of Insurance USA conference the pandemic-induced losses will be on a par with 2017, when three Atlantic hurricanes contributed to a catastrophe bill of $144 billion, the highest ever catastrophe bill on record according to Swiss Re.

Lloyd’s, which in March shut its underwriting room for the first time since World War II, previously pegged those pandemic losses at $107 billion.

“Unlike many events, a pandemic is everywhere at the same time. And it also comes into light through up to 16 different lines of claims,” Carnegie-Brown said, adding that the pandemic had extended longer than initially expected. 

More insurance and risk management news on the coronavirus crisis here.