Insurers believe the aviation sector has the largest risk of corporate default as a result of the Covid-19 pandemic, according to a survey published by broker Gallagher and reported by Reuters.
The survey, which polled 76 underwriters across 46 firms operating in Lloyd’s and the broader London Market between 24 June and 9 July, also saw insurers identify aviation, oil and energy and tourism as the three sectors they were most concerned about because of the potential coronavirus fallout.
However, only 29% of respondents who deal in credit and political risk insurance have seen claims directly linked to Covid-19 – Matthew Solley, managing director of structured credit and political risks at Gallagher, added that pandemic-related credit insurance claims are likely to rise later this year or early in 2021 as companies attempt to steer clear of default.
The survey further showed that insurers are worried about non-payment by governments, especially in Zambia. Regarding the broader political risk insurance market, which covers expropriation and war for example, Argentina was defined by insurers as the biggest area of concern.