British insurer RSA has revealed that its Q1 2020 claims frequency was down between 20 to 55 per cent compared to the same period last year, and that from the onset of the coronavirus claims period in March to the end of April, it has received a total of approximately 25,000 COVID-19 claims – of which 23,000 are travel claims that have coverage and will pay out. This will come at a cost of approximately £25 million net of insurance.
Meanwhile UK-based firm Direct Line announced a 70-per-cent drop in motor insurance claims for April; the business has also estimated that the impact of COVID-19 disruption to its travel business will be approximately £44 million, based on the assumption that the Government’s travel restrictions continue until September.
For German reinsurance firm Munich Re, the first quarter of 2020 brought potential losses of up to €800 million (around £697.7 million) from the coronavirus pandemic, while global reinsurance firm Swiss Re reported a US$225-million net loss for the same period. Many other insurers are in a similar position.
For many of these firms, the financial fallout from Covid-19 will not have too great an impact on their business. As Christoph Jurecka, CFO at Munich Re, reasoned: “The high losses due to COVID-19 are financially manageable for Munich Re. Thanks to our strong balance sheet and our prudent risk management, we remain a reliable partner to our clients – even in these challenging times.”