British insurer RSA expects to take a £25m hit from claims related to Covid-19 made between the beginning of March and the end of April.
The amount is net of reinsurance – meaning what’s left to pay once its reinsurance partners cover their share.
The firm said its exposure to travel insurance claims caused by the virus has been limited by “substantial reinsurance protection”, while its business interruption exposure will be largely limited because most claims are “not expected to be eligible” under their coverage terms.
Between its insurance products for travel, wedding cancellation and commercial business interruption policies, the insurer expects to pay out on 25,000 claims it believes are eligible – 23,000 of which were made on travel policies.
According to the report, the breakdown of the expected impact from travel claims is £16m without accounting for reinsurance – while the insurer has reserved £7m for wedding cancellation claims and £17m for those made on business interruption and related policies.