Are Insurance Stocks Worth the Risk?

Coronavirus has led to surge in claims for the insurance industry. While many companies are slashing dividends, Asian companies are thriving

James Gard 28 May, 2020 | 9:13AM

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Insurance is one of life’s necessities that people grudgingly pay for, and investors usually don’t get too excited about the sector, except as an income play.

But since the coronavirus outbreak, the industry has been anything but dull: Admiral is repaying £100 million to car insurance customers during lockdown, specialist insurer Hiscox (HSX) is the subject of a legal battle over its coronavirus coverage, while Lloyd’s of London has warned that the Covid-19 bill could cost insurers $200 billion.

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James Gard  is content editor for Morningstar.co.uk

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