Insurers are paying out almost 40% of the expected £ 1.2 billion SMB Covid bill
Insurers have paid out less than half of estimated business interruption credit claims since the Supreme Court tipped in favor of SMEs.
The test case weighed up whether SMEs that applied for business interruption insurance for pandemic-related losses should be entitled to it.
> See also: Small businesses receive payouts in deciding on business interruption insurance from Covid
More than 10,000 UK policyholders have received some cash since the Supreme Court ruling in January, totaling over £ 470 million. However, thousands are still waiting for an answer despite the court ruling that decisions should be made quickly.
The Financial Conduct Authority (FCA) released the first claims data this week, based on approvals from insurers. It set out how many claims related to the case had been accepted and repaid.
The regulator’s preliminary assessment last June showed that the total claims from this test case could be £ 1.2 billion. It was made clear that this was not a firm estimate and was set out prior to the Supreme Court ruling.
For 8,177 of the claims for which final settlements were agreed and paid, a total of £ 280m was paid out, according to the FCA. The total amount paid out at the beginning of the month was £ 192 million for the 2,030 unsettled debts on which an interim payment had been made.
According to the data, Hiscox was the insurer with the highest number of pending business interruption claims with 4,239. It was also noted that Hiscox had made final or provisional payment for just over half of the claims it accepted.
MS Amlin had the second largest number of pending claims with 3,224 and AXA came third with 2,109.
|Festivals||Number of pending claims|
|Hiscox Insurance Company Ltd.||4,239|
|MS Amlin Underwriting Limited||3.224|
|AXA Insurance UK plc||2.109|
|Royal & Sun Alliance Insurance plc||1,071|
|The New India Assurance Company Limited||1,017|
|Argenta Syndicate Management Limited||997|
|Covea Insurance plc||757|
|AXIS Managing Agency Limited||668|
|ERGO Versicherung Aktiengesellschaft||649|
|MS Amlin Insurance SE||493|
Covea Insurance prevailed with agreed and settled payments with 2,294 canceled policies. Axis Managing Agency had settled and paid out 1,547 policies, and Allianz Insurance had done so for 1,459 policies.
How to make a successful business interruption insurance claim