Lloyd’s has warned that the losses could increase further if the current lockdown measures continue into the next quarter of the year. 

It also said its payout on coronavirus claims would equal the combined impact of hurricanes Harvey, Irma and Maria in 2017. Lloyd’s said: “Importantly, these natural catastrophes were geographically contained events, occurring over the course of hours and days - vastly different in nature to the global, systemic and longer-term impact of COVID-19.”

Lloyd’s said its total payouts stemming from the 9/11 attacks were $4.7bn, while the 2017 hurricanes led to combined payouts of $4.8bn. It warned that once all factors were taken into account, the total impact of coronavirus on the insurance industry as a whole was likely to be much larger. 

Lloyd’s said: “The estimated 2020 underwriting losses covered by the industry as a result of Covid-19 are approximately $107bn.In addition, unlike other events, the industry will also experience falls in investment portfolios of an estimated $96bn, bringing the total projected loss to the insurance industry to $203bn.”

Insurers across the globe have been hit by the cost of the pandemic, although many would-be claimants have found the virus is not covered by their policies, BBC News reports.

John Neal, Lloyd’s chief executive, said the global insurance industry was paying out on “a very wide range of policies” to support business and people affected by the pandemic. He said: “What makes Covid-19 unique is not just the devastating continuing human and social impact, but also the economic shock. Taking all those factors together will challenge the industry as never before, but we will keep focused on supporting our customers and continuing to pay claims over the weeks and months ahead.”

Almost one-third of the insurance losses are expected to come from the cancellation or postponement of major events around the world, with other major categories including business interruption claims on property insurance.

• Read all of our articles relating to COVID-19 here.