Lloyd's of London expects associated with coronavirus losses for the insurance sector will be the largest in history.
Experts predict that the British insurance market offers hard times. In Britain, insurance and property payments from Covid-19 can reach 4.3 billion as of June 30. This figure will be even greater if the pandemic will continue for another quarter.
In its report on the economic impact assessment Covid-19 to the insurance industry, Lloyd’s suggested that by 2020, losses from underwriting reached 107 billion dollars.
“in addition, the industry is also faced with falling investment portfolios of approximately 96 billion, bringing the total projected loss of the segment will be 203 billion dollars" — the statement reads.
General Director of Lloyd’s of London John Neal said that any form of isolation and restriction beyond the second quarter is likely to cause to the current rating of payments will be added to the 1 – 2 billion.
“I really think we really know the full cost of the consequences of Covid-19 may, only within two years" — said Neil.
, Along with my predictions on effects of the pandemic on the insurance sector, Lloyd’s put forward a number of ideas on how the company could participate in the market recovery.
Neal expressed concern about the actions of insurers. “the Risk is that they've been buying up smaller insurance products at the time when they should consider the possibility to increase purchase" — he said.
Reinsurance — it is the process by which insurers agree to transfer part of their risk portfolios to other insurers in order to reduce the possibility of paying large sums for insurance claims.
Materials on this topic can also be read:
Lloyd's of London expects up to £3.5 bn in payouts coronavirus (TheGuardian)
Coronavirus will be the largest loss on record for insurers, Lloyd's of London says (CNBC)
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