LONDON, Nov 13 (Reuters) - Insurers in Britain risk being
"optimistic" in estimating losses from COVID-19 related claims
and should "stress test" their underlying assumptions, the Bank
of England said on Friday.
"Our work has highlighted that a number of firms have not
been able to accurately identify and track COVID exposed
policies, leading to unexpected COVID losses," the BoE said in a
letter to insurers.
"Firms should ensure that this uncertainty is reflected in
the reserve estimates and that, where possible, appropriate
procedures are put in place to identify and track exposed
policies."
(Reporting by Huw Jones; Editing by Alison Williams)
