Insurers have paid out over £968m in Covid-19 related business interruption claims since the conclusion of the test case, according to a fresh set of data from the Financial Conduct Authority (FCA).
The regulator revealed that providers had made initial payments for unsettled claims worth £331.2m and final settlements of £636.7m as of 5 August 2021.
Michael Kill, CEO NTIA said, “I am not sure whether to applaud or be angry at the release of figures from the FCA on insurance claim payouts nearing £1 Billion, given that it should have been more.”
“Frustrating that the legal process took a considerable amount of time to come to a close, and in that time our sector lost many claimants, which in turn reduced the exposure to insurance companies.”
“While the very businesses that refused to pay out are making money back with rising premiums
“In the past weeks, we have seen the launch of the Festivals and Event Insurance scheme which has been met with muted frustration of too little too late, and the feeling that it’s not something that is affordable for much of the sector, with many feeling it presents a false economy.”