Analysts at insight and consultancy firm Insurance DataLab have stressed that, despite substantial rate increases over recent months, further price rises will be needed to offset losses within the Lloyd’s market.
Lloyd’s premiums have increased by more than 50% year-on-year in every quarter since the start of the pandemic, the firm noted, but it warned that financial pressures will continue to affect businesses as the world’s economies continue to emerge from the pandemic.
The Covid-19 pandemic has driven the Lloyd’s market to underwriting losses of more than £2 billion for 2020, which was more than £1.6 billion worse than the £0.4 billion underwriting loss reported for 2019.
