COVID-19: Lloyd’s Insurance Union Estimates Costs: Affects $ 203 Billion Globally
Lloyds Insurance Society:
On May 14, a new coronavirus / pandemic estimated this year’s costs for global non-life insurers.
The total amount is 203 billion dollars, which is estimated to reach an unprecedented level.
Event canceled
Business interruption,
Transaction credit cover,
Insurance payments such as this have a negative impact on the entire economy.
In addition, the value of investment assets will be greatly reduced.
Lloyd’s Insurance: Cost Calculation
Lloyd’s insurance estimates the cost of each company.
- As a result, insurance payments for 2020 will total $ 107 billion.
- It is expected to be on par with 2005 ($ 116 billion) and 2017 ($ 92 billion), which were a series of large-scale natural disasters. ,
- This time, in addition to this, the value of investment assets will drop by $ 96 billion.
Overall costs are expected to reach unprecedented scale.
(NNA)
https://headlines.yahoo.co.jp/hl?a=20200515-00000012-nna-eurp
COVID-19 will see historic losses across the global insurance industry – Lloyd’s –
The world’s specialist insurance market. Also known as Lloyd’s of London;
is a market where members join together as syndicates to insure risks.
Lloyd’s market set to pay out up to US$4.3bn to customers.
Lloyd’s,
the world’s leading (re)insurance market,
today revealed that it will pay out in the range of $3bn to $4.3bn* to its global customers as a result of the far-reaching impacts of COVID-19.
This is on a par with 9/11 in 2001 and the combined impact of hurricanes Harvey, Irma and Maria in 2017,
all of which led to similar pay outs by the Lloyd’s market**. These losses could rise further if the current lockdown continues into 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.
To understand the impact of the pandemic on the global non-life insurance industry, Lloyd’s undertook an economic study of the potential losses.
This looked at both underwriting losses through the Profit and Loss Account, as well as the reduction in the value of investments which insurance companies hold to fund future claims payments.
The economic study took account of the current pay out estimates assuming continued social distancing and lockdown measures through 2020¬, as well as the forecast drop in GDP globally.
these natural catastrophes
were geographically contained events, occurring over the course of hours and days – vastly different in nature to the global, systemic and longer-term impact of COVID-19.
- In addition,unlike other events,
- the industry will also experience falls in investment portfolios of an estimated $96bn,
- bringing the total projected loss to the insurance industry to $203bn.
Coronavirus: Lloyd’s of London says claims to be biggest since 9/11 – BBC News
https://www.google.co.jp/amp/s/www.bbc.com/news/amp/business-52659313