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Bank of England tells insurers to check Covid loss figures
[LONDON] Insurers in Britain risk being"optimistic" in estimating losses from Covid-19 related claims and should "stress test" their underlying assumptions, the Bank of England said on Friday.
"Our work has highlighted that a number of firms have not been able to accurately identify and track Covid exposed policies, leading to unexpected Covid losses," the BoE said in a letter to insurers.
"Firms should ensure that this uncertainty is reflected in the reserve estimates and that, where possible, appropriate procedures are put in place to identify and track exposed policies."