Authored by the FCA
We have published the latest data we have collected (as of 5 June 2021) from all affected insurers on the progress of their non-damage business interruption (BI) insurance claims.
Background
We sent a Dear CEO letter to insurers affected by the business interruption insurance Test Case. The letter explained that we intended to gather information on all non-damage BI policies that are, in principle, capable of responding to the coronavirus (Covid-19) pandemic. We published an updated list of non-damage business interruption policies on 27 May 2021 that are, in principle, capable of responding to the Covid-19 pandemic in at least some circumstances, as submitted by insurers.
The letter also set out our 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.
What the data includes
Insurers have submitted their data on their progress with BI claims. We have decided to publish, at an individual firm level, the number of:
- BI claims where the insurer has received all the information required to enable them to calculate the total value of the claim
- BI claims for Covid-19 related loss that have been accepted
- BI claims where the insurer’s decision as to whether there is a valid claim is pending
- unsettled BI claims where an interim/initial payment has been made to the policyholder or their representative
- BI claims where an offer of final settlement has been made, accepted by the policyholder, and paid in full