Lloyd’s Of London Steps Up Call For Expanding Pandemic Insurance

Lloyd’s of London is calling for the creation of new insurance policies and government-backed funds to protect against future pandemics and global threats.

The world’s largest insurance market proposed a new type of policy that would cover revenue lost during a lockdown when businesses are ordered to close, according to a company report published on Wednesday.

AXA SA and Hiscox Ltd. are among insurers facing mounting Covid-related claims for lost income.

Lloyd’s also pushed for governments to back funds that would help protect insurers against a wave of claims during events such as a major public health emergency or telecommunications failure, according to the paper.

Insurance executives across Europe and the U.S. have been brainstorming ideas to protect against future shocks after Covid-19 led to lockdowns and the biggest slump in global output since the Great Depression. The firm is committing 15 million pounds ($18.6 million) to finding solutions after the coronavirus outbreak hit insurers hard. Lloyd’s in May estimated the total hit to insurers will be a record $203 billion.