No easy answers: Swiss Re’s Jerome Haegeli
Double punch Insurance claims and assets are both affected by a pandemic that has led to an economic shutdown and left few areas unscathed By Wendy Pugh
W
orldwide coronavirus cases are surging past 6 million this month as the insurance industry assesses the fallout and comes to grips with ramifications that will endure well after the outbreak emergency subsides. Swiss Re Chief Economist Jerome Haegeli says the virus-triggered global recession is like “a car crash without airbags”, and the economic and political implications should not be underestimated. Lloyd’s notes that it’s the first time in history where an event has impacted both insurance claims and assets. “What makes COVID-19 unique is not just the devastating continuing human and social impact but also the economic shock,” Chief Executive John Neal says. Underwriting losses covered by the global industry this year as a result of COVID-19 will be about $US107 billion, a Lloyd’s study estimates. That’s similar to the impact of Hurricanes Harvey, Irma and Maria three years ago. In addition, a $US96 billion fall in investment portfolios is also forecast, bringing total projected losses to $US203 billion. “Taking all those factors together will challenge the industry as never before, but we will keep focused on supporting our customers and continuing to pay claims over the weeks and months ahead,” Mr Neal says. The coronavirus pandemic has presented a very different risk to natural catastrophes that cause extensive
insuranceNEWS
June/July 2020
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