Coronavirus to spur largest single loss in insurance history: Chubb CEO

[turbinetree]

Source: Reuters

BUSINESS NEWS APRIL 22, 2020 / 11:26 AM / UPDATED AN HOUR AGO

(Reuters) - The coronavirus pandemic will likely spur the largest single loss in insurance industry history, said Evan Greenberg, chief executive officer of Chubb Ltd, during a call with analysts on Wednesday.

Chubb, one of the world’s largest insurers, reported its first-quarter financial results late on Tuesday, saying that the pandemic had not affected its performance but that it anticipated a “meaningful impact” during the second quarter.

Greenberg on Wednesday said the COVID-19 outbreak will be felt across its global commercial property and casualty insurance business.

“We’re in an unprecedented moment of historic proportions,” Greenberg said of the pandemic and economic fallout.

Read more: https://www.reuters.com/article/us-health-coronarivus-insurance-chubb/coronavirus-to-spur-largest-single-loss-in-insurance-history-chubb-ceo-idUSKCN2242FT?il=0

[marybourg]

1. I read it but I still don't understand what losses they are anticipating.

Every claim that was mentioned seems to exclude pandemics. So what are they going to pay out for? Maybe they’re just looking for a relief payment

[turbinetree]

2. I was thinking of the Loyd's of London scene back in the 80's & '90's .......

[Sedona]

4. The entertainment industry made millions in claims for cancelled productions

The don't expect to start back at production until at least August (give or take for the second wave).

https://deadline.com/2020/04/how-hollywood-reopens-coronavirus-shutdown-production-insurance-actors-crews-1202908471/



Getting up and running again in this brave new world is going to be very difficult to navigate. For one thing, insurers are unlikely to cover productions for COVID-19 cases when business resumes, according to multiple sources in the know. Producers all over filed multimillion-dollar claims triggered when civil authorities — governments — prevented filming from continuing and forcing production shutdowns. When the business starts up, that will now be considered an identified risk, and insurers will not cover it, sources said, just as CDC is warning of a second coronavirus wave.

What does that mean? Most likely, everyone on a film or TV production will be required to sign a rider, similar to ones they sign covering behavior codes in areas like sexual harassment, to indemnify the productions. “You acknowledge you are going into a high-density area, and while we will do our best effort to protect you, nothing is failsafe and if you contract COVID-19, we are not liable,” said a source involved drawing up these guidelines. “There is no other way we can think of to address this. If you don’t want to sign, don’t take the job.”

There will be no ideal way to ensure a completely safe set, but this is what might happen right away. Everyone will be tested before they are allowed onto a set. While not as accurate as traditional swab tests that take days to process, rapid antigen tests are the best possible option as they provide results within 15-20 minutes. Their daily use on sets is predicated on the availability of testing kits without taking them away from first responders and hospitals. Additionally, productions are expected to employ, when possible, antibody tests that detect immunity if a person had already had the virus.

[sop]

3. The insurance industry is already denying Business Interruption losses, claiming pandemics

are excluded as a named peril on Business Owners policies. And they'll probably exclude 3rd party liability claims for injuries, as well as employees' Workers' Compensation losses, for the same reason.

When that doesn't work, and they're sued by their own policyholders and injured plaintiffs, they'll fight it out in court, taking it all the way to the Supreme Court. As a last resort, if they lose in the courts, the insurance industry will lobby legislators, at both state and federal levels, to pass laws exempting them from pandemic losses.

And when all else fails, they'll raise rates in the future to cover their losses today. That's how the insurance industry operates.