Insurers count mounting costs of pandemic claims

Lloyds reckons loss claims could hit US$110b, though industry estimates vary

Dennis Chan

Published Mon, Nov 2, 2020 · 09:50 PM

Singapore

INSURERS are facing mounting costs from the raging Covid-19 pandemic worldwide. Industry estimates of total claims for losses this year vary but a Lloyds of London prognosis suggests they could go as high as US$110 billion.

The syndicates that operate in Lloyds, the world's biggest insurance market, are expected to cough up as much as £5 billion (S$8.8 billion) in Covid-19 insurance payouts in 2020, having already paid out £2.4 billion for the first half year. The claims are from 16 different insurance sectors, which mostly relate to event cancellations, but also include medical negligence, travel cancellations and business interruption policies.

The actual bill for 2020 for non-life insurers could go even higher as these predictions were made prior to a second and larger wave of infections that have, in quick succession, forced governments in France, Germany, Belg…