London (AFP)

The coronavirus pandemic will cost insurers more than $ 200 billion in 2020, making it one of the most costly events in the history of the sector, alongside Hurricane Katrina or the September 11 attacks.

According to the Lloyd's of London insurance market, the impact of coronavirus on insurers will be $ 203 billion this year.

These losses include 107 billion in compensation (cancellation of events or travel insurance for example) and 96 billion in capital losses on investment portfolios, due to the fall of the financial markets worried about the recession caused by the paralysis of economies.

"The insurance industry around the world compensates businesses and people affected by Covid-19 by operating many different coverages," said John Neal, chief executive officer of Lloyd's of London.

What makes this pandemic "unique" according to him "is not only the human and social impact but also the economic shock", with an explosion of unemployment, bankruptcies and a collapse of the gross domestic product in many countries.

The insurer, one of the city's oldest institutions with origins dating back to the 17th century, expects compensation between $ 3 and $ 4.3 billion for its clients around the world.

This amount could increase if the containment measures continue for several months, he warns.

His scenario is based on the maintenance of firm social distancing rules until the end of June, then a gradual relaxation throughout the second half.

This cost would be for Lloyd's of London similar to that of September 11 (4.7 billion) or even that of the hurricanes of 2017 (4.8 billion).

- Towards legal proceedings? -

He considers that it is still difficult to assess the precise economic and social impact of the Covid-19, given the magnitude and the complexity of the shock, but its total cost for all insurers should greatly exceed that of these events.

Swiss insurer Zurich Insurance on Thursday estimated its costs in damage insurance at $ 750 million.

And the pandemic had already sealed the results of the first quarter of the German giant Allianz.

The Lloyd's of London announcements join the finding drawn up in early May by the American IAG that the pandemic was shaping up to be the biggest disaster the insurance industry has ever faced.

The group, the leading American insurer, has already set aside $ 419 million in the first quarter to cover insurance policies related to Covid-19.

But getting compensated is sometimes an obstacle course for companies that are out of business due to the pandemic, especially in the United Kingdom.

This is particularly true for the most vulnerable such as non-food businesses or restaurants.

Some insurers are dragging their feet or believing they do not cover the risk of a pandemic, so that the British financial regulator (FCA) was forced to write to several of them to find out why they refused compensation.

The FCA has given insurers until Friday to clarify their position, otherwise it does not rule out lawsuits.

For their part, several hundred companies, including pubs, bars and nightclubs, want to launch a legal action against the insurer Hiscox, headquartered in Bermuda and who insists that their policies do not cover pandemics .

© 2020 AFP