Some interesting numbers this AM from Oliver Ralph and the team at the FT on the impact of COVID-19 on the insurance industry.
Specifically, just over half of the costs are from claims payouts, while the other half relate to a loss in investment returns.
To put these figures into context, they are almost on par with the 2005 hurricane losses.
Key losses include: business interruption, trade credit and event cancellation.
How can the industry respond to this?
At Lloyds of London, they have set aside £15m to look at future ways to deal with pandemics. In addition, Ed Gaze, Trevor Maynard and the team are launching a COVID-19 specific cohort for the Lloyds of London Labs. More information on that here.
The coronavirus pandemic will cost the insurance industry more than $200bn according to new forecasts from Lloyd’s of London. Just over half of the $203bn estimated loss relates to claims, with insurers expecting to pay out for events cancellation, business interruption and trade credit cover. Another $96bn comes from investment losses, where turmoil in financial markets has hit the assets insurers hold to fund claims.