The insurance giant Hiscox has been pushed into a loss in the first half of this year as they have set aside $232m to help cover Covid related claims, such as sporting events and holidays.
Hiscox boss Bronek Masojada said it had been a “testing six months,” and added, “Some of these [travel] companies have gone bust and we are picking up the tab.”
Hiscox who are a part of a group of insurers underwrote the cancellation for the world-famous Wimbledon tournament for 2020, which are spread across a few companies.
Hiscox and eight other companies are going to court to decide if insurance policies should pay out to companies who have taken out insurance and then have been hit by the pandemic.
Companies have said that they could go bust if the insurance is not paid out, and the outcome of the case is expected in September.
In the six months to June Hiscox was hit by a $138.9m pre-tax loss, whilst gorss written premiums were down by 4.4% to $2.2bn.
Hiscox chairman Robert Childs said, “Having been in the business of risk for 47-years, one might expect to become somewhat immune to surprises, but some events have the ability to shock and amaze. Covid-19 has proven to be thus.”