Covid19 Claims Explode

Insurers in the UK were never prepared for claims arising from an entire nation’s economy being shut down for several months at a time.  This is a scenario that is being played out in many other nations.  Once they pay out those claims, we might see insolvency from smaller insurers, rising costs for reinsurance, and increased premiums for future coverage.  In the UK, insurers did themselves no favour by refusing payouts, and were taken to court.  Not only have they lost those court cases, but they will likely face resistance to increase in premiums.  This was handled badly, and is a lesson on how not to do it.