The Association of British Insurers has published estimates revealing members expect to pay around £2.5bn for COVID-19 insurance claims incurred in 2020.

The latest estimates include £2bn for COVID-19 business interruption claims and £204m paid from COVID-19 related protection insurance claims including life, critical illness, and income protection insurance claims.

The ABI said travel insurance claims were expected to hit £152m while a further £121m had been logged for other areas including events, weddings, and liability insurance.

Huw Evans, director-general at the ABI, said: “The COVID-19 pandemic is unprecedented in its impact and will be one of the biggest insured events of recent times. These latest estimates demonstrate the range of support ABI members expect to offer their customers as a result of COVID-19 related claims across a wide range of insurance policies.

"This data was collected from individual firms by the ABI in mid-late January, and millions of pounds continue to be paid out every week in claims settlements.”

Share Story: