Menu

Reinsurance News

Hiscox forecasts up to $175mn in COVID-19 payouts

22nd April 2020 - Author: Charlie Wood

Specialist re/insurer Hiscox is expecting to pay up to $150 million in net claims, should disruption caused by restrictions on travel and mass gatherings continues for a six month period from March.

hiscox-logoIn the event that these coronavirus-related restrictions are extended beyond six months, Hiscox expects that these claims could increase by an additional $25 million.

Hiscox says it is also receiving claims as a result of economic losses following government action to stop the spread of COVID-19.

Like others in the industry, Hiscox UK’s core small commercial package policies do not provide cover for business interruption as a result of the general measures taken by the UK government in response to a pandemic.

Hiscox believes its business interruption exposure to COVID-19 is limited in Hiscox Europe and it has negligible exposure in Hiscox USA.

Hiscox UK and Hiscox Europe have a substantial catastrophe reinsurance program.

Hiscox notes that its capital, liquidity and funding positions remain robust and the Group remains operationally strong in the face of unprecedented global uncertainty presented by the COVID-19 pandemic.

However, Hiscox expects this uncertainty and consequent capital contraction to influence rates across wholesale and reinsurance markets.

Print Friendly, PDF & Email

Recent Reinsurance News

Getting your daily reinsurance news from Reinsurance News is a simple way to receive only the reinsurance industry news that matters, delivered directly to your email inbox.

  • Only email is mandatory, but the more you tell us about yourself the better we can serve you in future!
  • This field is for validation purposes and should be left unchanged.

By submitting the form you are giving your consent to be emailed by us.

Read previous post:
SCOR achieves 6.6% pricing increase at April renewals

SCOR Global P&C has reported a 6.6% overall increase in pricing at the April 1 renewals, which saw the reinsurer...

Close