The loss numbers for Property & Casualty Insurance in the face of COVID have been staggering. Many businesses were forced to close for an extended time, switch to online only or even close altogether because of the suddenness of the pandemic. This has resulted in claims increasing as time has gone on.
According to Perritstratt, LLC, the reported losses this year have already reached $25 Billion, with at least $4.5 billion coming in the second quarter. The losses are well under the $60billion that is expected to come from the insurance industry. These numbers are based out of what has been reported so far and that number is expected to spike as the year continues with many businesses shutting down or being forced to adjust how they work due to the virus. With these closures, carriers of P&C insurance are being forced to pay and then raise their rates due to not being able to predict an event like this happening.
With losses mounting, insurance carriers will have to adapt to the new challenges. As for businesses, having properly structured P&C coverage could negate some of this but it is still important to be mindful of rising rates once this pandemic subsides.