In the face of rising uncertainty surrounding Coronavirus’ impact on the re/insurance industry, Lloyd’s has announced a series of actions designed to test market resilience.
On Friday 13 March, Lloyd’s will close the underwriting room at 1 Lime Street in London and invoke its Emergency Trading Protocol for 24 hours in order to test for alternatives.
It’s hoped the exercise will provide information on the real-life effectiveness of the protocol.
Relevant regulators have been informed of the plans.
Additionally, Lloyd’s will take the opportunity to deep clean the underwriting room and all public areas in the Lloyd’s building.
This move comes amid action from governments worldwide in hopes of halting the virus’ spread and limiting its impact on industry.
Swiss Re Institute said yesterday that it is expecting to see a global recession in 2020 as the coronavirus outbreak continues to cause major disruption around the world, putting pressure on already weak economic resilience.
Analysts noted that the recession will likely be mild in a historical context, although economic growth will likely decelerate quite abruptly in Japan and the Eurozone, including in Italy, France and Germany.