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Lloyd’s of London will pay up to $ 4.3 billion (£ 3.5 billion) to customers as a result of the coronavirus pandemic.
The insurance market said it was on par with the impact of September 11, but that it expects the eventual total cost of COVID-19 to the industry to be “much higher” than that and other catastrophes.
Lloyd’s estimates that overall, taking into account the drop in investment values, as well as the cost of paying claims, the global insurance industry will lose $ 203 billion this year.
Chief Executive John Neal said: “The global insurance industry is paying for a wide range of policies to support companies and individuals affected by COVID-19.”
“The Lloyd’s market alone is expected to pay claims totaling about $ 4.3 billion, making it one of the largest payments on the market.
“What makes COVID-19 unique is not only the continuing devastating human and social impact, but also the economic shock.
“Taking all of those factors together will challenge the industry like never before, but we will stay focused on supporting our customers and continuing to pay claims for the next few weeks and months.”
Lloyd’s said its preliminary payment estimate was in the range of $ 3 billion to $ 4.3 billion (£ 2.4 billion to £ 3.5 billion) based on the assumption of “rules and restrictions of material distance “that will last until the end of June.
He said 15% of the payments covered the United Kingdom and the rest largely covered the United States and the rest of the world.
Almost a third of the claims (31%) were for cancellations of major events like the Olympics, and others covered areas such as property insurance and business credit.
Lloyd’s expected level of total payments compares to a total of $ 4.8 billion after Hurricanes Harvey, Irma and Maria in 2017 and $ 4.7 billion as a result of the September 11, 2001 terrorist attacks.
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