Lloyd’s Chief Warns Insurers Face Biggest Ever Losses

Costliest event in the history of the insurance industry.
Lloyd’s Chief Warns Insurers Face Biggest Ever Losses
April 29, 2020

John Neal, head of Lloyd’s of London, said that the coronavirus pandemic will probably be the costliest event in the history of the insurance industry and be more expensive to insurers than such major disasters as Hurricane Katrina in 2005 and the 9/11 terrorist attacks. Neal said, “You’re into tens of billions, if not hundreds of billions of losses that will be discussed over time.” A Financial Times article reports insurers will have to make payouts on a wide variety of policies, from event cancellation to management liability, but there is much uncertainty about coverage for business interruption. Neal believes insurers’ payouts will be higher than the $50 billion in Hurricane Katrina losses covered by the industry. Said Neal, “The chances of the market making anything other than a notable loss in 2020 are zero.”


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