More than half of the amount, $107 billion, will cover insurance indemnities for canceled events, forced business interruption, etc. Another $93 billion falls on investment losses due to lower asset values.
“These are losses of such proportions that none of us have seen throughout our lives ... I don’t think anyone could have anticipated the scenario when all customers worldwide suffer the same losses at the same time,” says Lloyd`s CEO John Neal. Taking into account only insurance indemnities, 2020 will be one of the most expensive for the insurance industry along with the years 2005 and 2017, which have been hit by large-scale hurricanes in the Caribbean, as well as 2001 with 9/11.
Lloyd`s estimates its own insurance payouts in the amount of $3 billion to $4.3 billion, and notes that the amount may be greater if the lockdown continues after the end of June.