<p>The blockage of the Suez Canal for nearly a week will result in a "large loss" for Lloyd's of London, its chairman said on Wednesday, as the insurance market recorded a 900 million pound ($1.2 billion) pretax loss in 2020 due to the Covid-19 pandemic.</p>.<p>The Canal is working to clear the backlog after the refloating this week of a stranded giant container ship. The blockage threw global supply chains into disarray.</p>.<p>Bruce Carnegie-Brown told Reuters it was too early to estimate the exact loss, but "it's clearly going to be a large loss, not just for the vessel but for all of the other vessels that were trapped and unable to get through".</p>.<p>He added this could mean a loss for Lloyd's of around $100 million or more.</p>.<p>Liability insurance claims for ships and cargo impacted by the delay are expected to fall initially to the container ship Ever Given's liability insurer, UK P&I Club. But UK P&I Club will also use reinsurance, some of it in the Lloyd's market, industry sources say.</p>.<p><strong><a href="https://www.deccanherald.com/international/world-news-politics/who-will-pay-for-clearing-suez-canal-blockage-968590.html" target="_blank">Read | Who will pay for clearing Suez Canal blockage?</a></strong></p>.<p>Carnegie-Brown said Lloyd's may be on the hook for around 5-10 per cent of the total reinsurance claims.</p>.<p>Fitch Ratings said this week that global reinsurers were likely to face hundreds of millions of euros of claims due to the incident.</p>.<p>The 2020 loss for the 330-year-old Lloyd's market, home to around 100 syndicate members, compares with a 2.5 billion pound profit in 2019.</p>.<p>Lloyd's expects to pay out 3.4 billion pounds in 2020 Covid-19 claims net of reinsurance, with Carnegie-Brown saying many of those payments would be related to the cancellation of major events such as the Wimbledon tennis tournament. Covid-19-related payments will continue this year, he added.</p>.<p>But Lloyd's said premium rates had risen 10.8% last year and rate rises had continued into 2021. Insurers typically increase rates after experiencing large losses.</p>.<p>After several closures due to the pandemic, the Lloyd's underwriting floor will reopen on May 17. Carnegie-Brown said surveys showed most market employees expect to return to the office "three-plus days a week". </p>
<p>The blockage of the Suez Canal for nearly a week will result in a "large loss" for Lloyd's of London, its chairman said on Wednesday, as the insurance market recorded a 900 million pound ($1.2 billion) pretax loss in 2020 due to the Covid-19 pandemic.</p>.<p>The Canal is working to clear the backlog after the refloating this week of a stranded giant container ship. The blockage threw global supply chains into disarray.</p>.<p>Bruce Carnegie-Brown told Reuters it was too early to estimate the exact loss, but "it's clearly going to be a large loss, not just for the vessel but for all of the other vessels that were trapped and unable to get through".</p>.<p>He added this could mean a loss for Lloyd's of around $100 million or more.</p>.<p>Liability insurance claims for ships and cargo impacted by the delay are expected to fall initially to the container ship Ever Given's liability insurer, UK P&I Club. But UK P&I Club will also use reinsurance, some of it in the Lloyd's market, industry sources say.</p>.<p><strong><a href="https://www.deccanherald.com/international/world-news-politics/who-will-pay-for-clearing-suez-canal-blockage-968590.html" target="_blank">Read | Who will pay for clearing Suez Canal blockage?</a></strong></p>.<p>Carnegie-Brown said Lloyd's may be on the hook for around 5-10 per cent of the total reinsurance claims.</p>.<p>Fitch Ratings said this week that global reinsurers were likely to face hundreds of millions of euros of claims due to the incident.</p>.<p>The 2020 loss for the 330-year-old Lloyd's market, home to around 100 syndicate members, compares with a 2.5 billion pound profit in 2019.</p>.<p>Lloyd's expects to pay out 3.4 billion pounds in 2020 Covid-19 claims net of reinsurance, with Carnegie-Brown saying many of those payments would be related to the cancellation of major events such as the Wimbledon tennis tournament. Covid-19-related payments will continue this year, he added.</p>.<p>But Lloyd's said premium rates had risen 10.8% last year and rate rises had continued into 2021. Insurers typically increase rates after experiencing large losses.</p>.<p>After several closures due to the pandemic, the Lloyd's underwriting floor will reopen on May 17. Carnegie-Brown said surveys showed most market employees expect to return to the office "three-plus days a week". </p>