World News – CA – Global Insurance Losses for COVID-19 Are Higher Than Early Estimates: Lloyd’s Chairman

Global insurance losses from the COVID-19 pandemic will be higher this year than the $ 107 billion Lloyd’s in London previously estimated, its president, Bruce Carnegie Brown, said Wednesday..

Carnegie Brown told Reuters Events Future of Energy in the United States that the losses resulting from the epidemic will be on par with 2017, when three Atlantic hurricanes contributed to a disaster worth $ 144 billion, the highest level ever according to Swiss company Re. .

Lloyd, which closed its IPO in March for the first time since World War II due to the British government shutdown, said Lloyd’s companies are facing claims from 16 different trade lines..

“Unlike many events, the epidemic is spreading everywhere at the same time,” Carnegie Brown said, adding that the outbreak extended for a longer period than expected..

The 330-year-old Lloyd’s runs a commercial insurance marketplace, insuring anything from petroleum rigs to the legs of soccer players.. She said she would pay 2. 4 billion pounds ($ 3. 2 billion) in pandemic-related claims for the first six months of 2020.

Lloyd’s company has proposed a « Black Swan » reinsurance plan for governments around the world to ensure better coverage during conditions such as pandemic and other business disruptions, but Carnegie Brown said it has been difficult to draw the government’s attention to this issue yet.

“The challenge facing governments of course is that they focus on the very short term . . . (It’s very difficult) she has to raise her heads over the barrier and think about the future, « Carnegie Brown said.

He added that online exposure remains the biggest risk insurance companies face, echoing comments made earlier this week by insurance broker and consulting firm Marsh & McLennan..

($ 1 = 0. £ 7,517) (Report by Noor Zainab Hussain from Bengaluru; edited by Caroline Cohen in London and Jan Harvey)

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Lloyd’s of London, Insurance, Bruce Carnegie-Brown, Reinsurance