The coronavirus pandemic and resulting lockdowns have significantly impacted commercial and specialty lines of insurance, both in terms of claims volumes and financial losses.

The rapid spread of COVID-19 in the first half of 2020 caused drastic lockdowns, forcing the closure of businesses, cancellation of events and a general curtailment of economic activity around the globe.

In April, 3.9 billion people—almost half the world’s population—were largely confined to their homes. Many markets experienced deep contractions during lockdowns. The U.K. economy shrank by almost a quarter, for example.

The COVID-19 pandemic is one of the largest economic loss events in history for companies and insurers alike. However, it is not only the magnitude of the impact that is unprecedented.

Claims trends and risk exposures are also likely to evolve in both the mid- and long-term as a result of the pandemic.