How many claims will property and casualty insurers have to pay due to the COVID-19 pandemic?
No one is certain, Swiss Re says in a report entitled World insurance: the recovery gains pace.
The reinsurer points out that pandemic-related P&C losses stem almost entirely from commercial lines. Business interruption losses were the main driver, due to event cancellations and communicable diseases clauses.
Credit insurance has also generated high claims for insurers. Expensive claims are also expected in the liability segment, notably in errors & omissions (E&O), directors & officers (D&O) and medical malpractice.
“It is still unclear what the final claims total will be, but the latest estimates of final industry losses published by various market participants are in an approximate range from US$30 billion to US$60 billion," Swiss Re points out. The reinsurer also expects the property and casualty industry to maintain its underwriting profits in 2021.
