Lloyd’s of London has confirmed that it is sticking to the estimated loss of $107bn as a result of the COVID-19 pandemic.
In a recent webinar hosted by John Neal, CEO of Lloyd’s of London, he was asked if he could confirm this amount to be an accurate estimate.
Neal commented: “The markets are incrementally reporting their COVID-19 losses so I think there’s a lot more to come through in terms of the recessionary impacts. So, I do think when it’s all up the number will be close to $100bn”.
The Lloyd’s estimate is higher than most other re/insurers. This is could be due to the markets slowly reporting their COVID loss, which means that there’s more figures to come through to get the estimate in the right ball-park.
Lloyd’s says that it expects to pay out up to £5 billion (USD 6.5bn) on a gross basis in COVID-19 claims, of which £2 billion (USD 2.6bn), or roughly 40% is expected to be covered by reinsurance protection.
Previously, Lloyd’s announced that it expected to pay customers between $3 billion and $4.3 billion in claims due to COVID-19, against an industry-wide loss of $107 billion in 2020.