27 Apr 2020
Posted in Insurance
Business interruption insurers set for significant rise in claims due to COVID-19, says GlobalData
Following the news that the ABI has predicted that COVID-19 non-life related claims will exceed £1bn;
Ben Carey-Evans, Insurance Analyst at GlobalData, comments on the news on the matter:
“Data from GlobalData’s Solvency II Analytics Database shows that insurers’ total non-life claims are around the £30bn mark annually. The latest available figure shows that total gross incurred claims to all UK insurers were £27.9bn in 2018. Therefore, while the impact of COVID-19 is very significant, and represents a huge spike over a short period, it is manageable for the industry.
“The figures also highlight the significant strain on business interruption insurers. It was only the eighth most popular small to medium enterprise (SME) insurance product in 2019, in terms of penetration, according to GlobalData’s 2019 UK Insurance Consumer Survey, yet it is expected to account for £900m of the £1.2bn in claims.
“GlobalData’s survey shows that the five biggest players within business interruption insurance in the UK in 2019 were AXA, Zurich, Aviva, Barclays and LV=. AXA was the leading player, with a share of 7.5%. These insurers are likely to face a spike in claims, though no insurer holding a share of above 7.5% will help ensure no one player is hit too hard.”