Business interruption insurance test case – Insurer claims data

August 2021

In January this year the FCA sent a Dear CEO letter to insurers affected by the Test Case which explained that it intended to gather information on all non-damage Business Interruption (BI) policies that are capable of responding to the Covid-19 pandemic following the Court judgments. A list of updated policies was published on 12th March 2021.  The letter also set out the intention to gather information from all affected insurers regularly on the progress of their non-damage BI claims and to publish some of this data. The FCA has now published a fifth set of data in relation to BI claims.

The FCA has decided to publish the following information at individual firm level:

Some of the figures published include:

Whilst the above information could be perceived as being positioned as encouraging, on analysis of the figures we can see that out of the 48 published insurers only 13 have accepted over 80% of BI claims submitted to them.  At the other end of the scale there are 13 insurers who have accepted less than 20% of the BI claims submitted to them.  Overall, less than 50% of BI claims have been accepted by insurers.  Firms involved in dealing with BI claims should be aware of the data and keep the results in mind when considering their claims handling processes.

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