Coronavirus pandemic is going to cost $203 billion to the global insurance industry according to forecast by Lloyds.
Lloyds itself is expecting to do the clearance of $ 4.3 billion on covid-19 claims which will put the global health crisis equivalent to September 11, 2001 terror attacks, Lloyds said in a statement.
It added, “The estimated 2020 underwriting losses covered by the industry as a result of COVID-19 are approximately $107 billion, on par with some of the biggest major claims years for the industry.”
Besides, industry will experience drop in investment portfolios around an estimated $96 billion bringing the total expected loss to the insurance industry by $203 billion.
The coronavirus has so far infected 4.3 million worldwide and killed almost 300,000 people.
In a statement it said, “Lloyd’s… today revealed that it will pay out in the range of $3.0 billion to $4.3 billion to its global customers as a result of the far-reaching impacts of COVID-19.”
It expects the losses to inflate further if the lockdown continues for another quarter
“Lloyd’s believes that once the scale and complexity of the social and economic impact of COVID-19 is fully understood, the overall cost to the global insurance non-life industry is likely to be far in excess of those historical events.”
Lloyd’s cleared a total of $4.7 billion in claims which arose out of 9/11 terror attacks. While the natural calamites of hurricanes namely Harvey, Irma, & Maria claims were around $4.8 billion in 2017.
John Neal, Chief Executive at Lloyd’s said, “COVID-19 would have a “unique” impact on the sector due to its “devastating” economic, human and social cost.The global insurance industry is paying out on a very wide range of policies to support businesses and people affected by COVID-19.”