Insurance market Lloyd’s of London has said it expects coronavirus-related claims to cost it $3bn to $4.3bn (£2.5bn to £3.5bn).
That means its biggest payout since the 11 September 2001 attacks in the US.
The losses could rise further if the current lockdown continues into another quarter, Lloyd’s said.
Insurers around the world have been hit by the cost of the pandemic, although many would-be claimants have found the virus is not covered by their policies.
Lloyd’s said that once all factors were taken into account, the total impact on the insurance industry was likely to be far bigger.
“The estimated 2020 underwriting losses covered by the industry as a result of Covid-19 are approximately $107bn,” it said.
“In addition, unlike other events, the industry will also experience falls in investment portfolios of an estimated $96bn, bringing the total projected loss to the insurance industry to $203bn.”