The almost week-long disruption of ship traffic in the Suez Canal has led to what has been described as a “huge loss” for Lloyd’s of London after the insurance market in 2020 recorded a loss of £900 million (equivalent to $1.2 billion) before tax due to the Corona pandemic.
The channel is recently working on removing scenes of the backlog that was used to re-float the giant container carrier this week, and this chaos has disrupted global supply chains, but it is too early to accurately calculate the actual loss, but it will most likely be a very big loss, and Lloyd’s of London’s loss could be about $100 million or even more.
It is expected that claims for insurance compensation for ship and cargo insurances affected by the delay will fall primarily on the insurance company of the container carrier, Ever Given, called the UK P&I Club, but this company will also re-order insurance, and some of the reinsurance money will come from Lloyd’s market that may be in a bind that will make it pay 5-10% of its reinsurance claims, and insurance companies around the world are likely to see claims of hundreds of millions of euros due to the accident.
Lloyd’s market loss in 2020 will be compared to the profit it made in 2019 which amounted to £2.5 billion and is now expected to pay around £3.4 billion to respond to the claims of those infected with Coronavirus with reinsurance, and one of the payments will be related to It has canceled major events such as the Wimbledon tennis tournament, but payments related to the COVID-19 crisis will continue this year, and one of its payments will be related to its cancellation of major events such as the Wimbledon tennis tournament, but payments related to the COVID-19 crisis will continue this year.
It is worth noting that the company’s insurance premium rates increased by 10.8% last year and this increase will continue during 2021 as well, as insurance companies usually raise their premium rates after suffering large losses.