Lloyd’s of London says coronavirus claims could reach GBP5B

LONDON (AFP) – Lloyd’s of London yesterday raised its estimate for the total amount it expects to pay out in coronavirus-linked claims as the cost of the global pandemic continues to mount for insurers.

The world’s largest insurance market said in a statement that it now expects to pay out up to GBP5 billion (USD6.5 billion) in claims, compared with an earlier estimate of USD4.3 billion in May.

Lloyd’s said it expects to recoup GBP2 billion of the payouts from reinsurers.

“The first half of 2020 has been an exceptionally challenging period for our people, our customers, and for economies around the world,” Chief Executive John Neal said in a statement.

“The pandemic has inflicted catastrophic societal and economic damage calling for unparalleled measures to stifle the spread of the virus, and to get businesses and economies back on their feet.”

Lloyd’s said its COVID-19 claims after reinsurance recoveries totalled GBP2.4 billion in the first half, pushing it into a pre-tax loss of GBP438 million.

In May, Lloyd’s estimated that pandemic would cost the global insurance industry more than USD200 billion.

The interior of Lloyd’s of London, the centuries-old insurance market in central London on April 27, 2016. PHOTO: AFP