COVID-19 general insurance losses range from $32 billion to $80 billion across key classes in U.S. and U.K., says Willis Towers Watson - Seite 3

About the report

This paper, which complements the COVID-19 report by Willis Re published on April 23, 2020, offers an independent assessment using a scenario-based approach to add a quantitative dimension. Our initial focus is on business written in the U.S. and U.K. (including the London Market), while noting that the reinsurance of this business could impact other insurance markets.

The report represents an early attempt to understand the different dynamics affecting property and casualty insurers. Our efforts at quantification should provide directional insights and illustrate relative orders of magnitude as we start to address the considerable uncertainty around this event; however, they should not be considered as point estimates and are almost certainly going to change as more information becomes available.

About Willis Towers Watson

Willis Towers Watson (NASDAQ: WLTW) is a leading global advisory, broking and solutions company that helps clients around the world turn risk into a path for growth. With roots dating to 1828, Willis Towers Watson has 45,000 employees serving in more than 140 countries and markets. We design and deliver solutions that manage risk, optimize benefits, cultivate talent, and expand the power of capital to protect and strengthen institutions and individuals. Our unique perspective allows us to see the critical intersections between talent, assets and ideas — the dynamic formula that drives business performance. Together, we unlock potential. Learn more at willistowerswatson.com.

Media contact

Ileana Feoli: [phone]
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1}The scenarios used are based on epidemiological models developed by our life insurance experts and informed by the latest mortality information. Each scenario includes the assumed duration of social distancing and an estimate of the economic impact, including forecasts of the length of the resulting economic recession and time frames on how long GDP will take to recover to pre-COVID levels.
² Social distancing and lockdowns help to reduce the spread of COVID-19 gradually over a period of six months, until both medical advancements and long-term societal improvements in transmission reduction, such as through improved hygiene, are able to keep new infections at a low level.
³ It is reasonable to assume that different countries will experience differing levels of disruption, and the report’s scenario approach creates a framework for (re)insurers to work within.
⁴ Similar to the Moderate scenario, except that mitigative actions are slower and less effective. Lockdowns are in place at varying levels of severity for most of 2020, as governments attempt to balance mitigation of economic damage with the ability for health care systems to manage severe infections. The result is a global spread that approaches the scale of the 1918 flu pandemic.