Groups join forces over Hiscox BI claims as Pool Re called on to cover firms

The UK’s two biggest policyholder action groups pursuing Hiscox over Covid-19 business interruption (BI) claims have joined forces, with one also calling on government to release funds from terrorism backstop Pool Re to help the country pay for the pandemic’s losses. The Night Time Industries Association (NTIA) has formed an alliance with Hiscox Action Group to try and force the insurer to pay BI claims. The alliance will see the groups share information, pool resources and collaborate more closely on legal actions against the firm. The two groups represent more than 500 Hiscox policyholders with total insurance cover in excess of £50m. The NTIA’s CEO Michael Kill said the alliance will “ratchet up the pressure” on the insurer. “These policies have clearly been triggered and we are determined to do everything we can to get Hiscox to pay out quickly and in full,” he said. Mark Killick, of Hiscox Action Group’s steering committee, said Hiscox’s behaviour has been “disgraceful” and is threatening thousands of UK businesses. “By working together with the NTIA, we hope to force Hiscox to do the right thing before it is too late for many of our members,” he said. The NTIA’s members include bar, club and restaurant owners whose premises have been closed by the lockdown and have business-closure insurance with Hiscox. They are represented by insurance broker NDML and Philip Kolvin QC of Cornerstone Barristers. The Hiscox Action Group is a wide grouping of policyholders, who instructed Mishcon de Reya last week as legal counsel. Their legal action has been underwritten by Harbour, a leading litigation funder. Richard Leedham is the Mishcon de Reya partner leading the action and said: “I welcome this alliance with the NTIA. Hiscox has said it did not intend to cover what has happened. This is irrelevant. We are looking at what is in the contract. Hiscox has provided a very broad form of wording and its natural meaning would cover someone whose business was interrupted by the lockdown.” Meanwhile, broker NDML and the NTIA have called on UK Chancellor Rishi Sunak to release Pool Re funds to break insurer deadlock on Covid-19 BI claims and “save the leisure and hospitality industry”. They want him to release excess capital from Pool Re’s $6.6bn funds. NDML and the NTIA sent an open letter to petition Mr Sunak for his support. NDML said it has identified a “unique opportunity” that will help the night-time industry survive, without “crippling insurers with unmanageable business interruption payouts, putting the insurance industry itself under serious strain”. “Pool Re has amassed a fund of £6.6bn, and it’s NDML’s belief that drawing from excess capital in this fund will provide the financial breathing space necessary to break insurer deadlock and save businesses,” it said. The firm’s managing director, Simon Mabb, added: “We’ve been trying to help and find solutions for our clients and the wider leisure industry since the very beginning of the Covid-19 pandemic. We’ve pushed and challenged insurers but have reached an unmanageable deadlock. We truly believe this is an opportunity that can future-proof pandemics and create a solution for today, as well as a plan for tomorrow. “This is a new idea and something that hasn’t been done before. But we’re facing circumstances we’ve never faced before and that calls for innovative solutions to keep businesses afloat, and will save the burden of lengthy and very expensive court cases that are assembling as we speak,” he continued. Mr Mabb said Pool Re exists to insulate taxpayers from major losses following unforeseeable acts of terror. “While the current situation is not an act of terror, it was certainly unforeseeable, and NDML believes that with such significant capital built up by Pool Re, it’s only right that excess funds are released in this time of crisis,” he added.

Groups join forces over Hiscox BI claims as Pool Re called on to cover firms

Want to read this article?

Read Next

Ferma members told AI will bring risk and reward for corporate insurance buyers

Aon’s revenues up 5% as it completes $13bn NFP deal

Warmer climate spreading risk of malaria and dengue to new regions

UN launches new net-zero insurance forum to replace NZIA

Pen extends fleet capacity deal with Zurich in Republic of Ireland

Ferma members told AI will bring risk and reward for corporate insurance buyers

Aon’s revenues up 5% as it completes $13bn NFP deal

Warmer climate spreading risk of malaria and dengue to new regions

UN launches new net-zero insurance forum to replace NZIA

Pen extends fleet capacity deal with Zurich in Republic of Ireland

Want to read this article?

Read Next

Ferma members told AI will bring risk and reward for corporate insurance buyers

Aon’s revenues up 5% as it completes $13bn NFP deal

Warmer climate spreading risk of malaria and dengue to new regions

UN launches new net-zero insurance forum to replace NZIA

Pen extends fleet capacity deal with Zurich in Republic of Ireland

Related Articles