Over 12,000 UK policyholders await insurer decisions on Covid-19 BI claims

Insurers have settled and paid out on 10,772 UK business interruption (BI) Covid-19 claims in the UK related to the country’s Supreme Court ruling, but more than 12,000 policyholders have yet to receive a decision three months after it was found that the claims were valid, according to new data released by regulator the Financial Conduct Authority (FCA). A total of 35,438 claims for Covid-19 BI losses have been accepted by insurers, up from 21,140 in the FCA’s March update on the market’s progress in meeting claims following the court decision. During the past month, insurers have settled and fully paid out on 2,595 policies and made decisions on a further 6,170 policies. Insurers have now paid out £352m in full settlements on 10,772 claims, up from £280m and 8,177 in March. A further 2,898 unsettled claims have received interim payments worth £248m, against figures of 2,030 and £192m in March. Insurers have now paid a total of £600m in Covid-19 BI claims covered by the FCA test case. The latest FCA figures show that Hiscox has the highest number of pending claims, where it has yet to make a decision on validity, at 5,317. This is up from 4,311 reported last month. But the company has increased the number of accepted claims from just 253 last month to 6,351. Hiscox has now paid 67 claims in full, from just 35 in March, and 529 unsettled claims have received a part payment, from just 116 last month. MS Amlin, which last month had the second-highest number of cases pending a decision, has cleared its books and has now accepted all 3,944 claims. It has also made 108 final payments accepted by the policyholder, from none last month. Ms Amlin has made interim payments on a further 79 unsettled claims. The New India Assurance Company now has the second-largest number of outstanding claims after Hiscox, with 969 policyholders awaiting decisions. The insurer has accepted 227 claims and it has settled 102 claims in full. QBE has accepted 2,521 claims but has settled in full with just 362 policyholders, although this is up from 95 in March. While most insurers have now begun to settle claims in full, Brit, Chubb Europe and QBE Europe, which has accepted 54 claims, have yet to get off the mark. QBE UK, which has accepted 2,467 claims, has settled and paid in full to 362 policyholders. Covéa has again recorded the highest number of settled claims paid in full and accepted by the policyholder at 2,403. It has accepted a total of 3,245 claims, with a further 483 decisions pending. AXIS follows with 1,827 claims settled and paid in full. It has accepted 2,948 claims, with decisions pending on a further 1,149 policies. Commercial Risk is hosting a Claims Management Conference on 27-29 April 2021. We have worked with a number of European risk management associations to bring together a group of experts in a virtual forum to discuss how best to adapt to emerging long-term risk trends and explore the type of claims patterns that these new exposures are generating. Click here to secure your seat at the event.

Over 12,000 UK policyholders await insurer decisions on Covid-19 BI claims

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