Mel Stride urges insurers to be clear and fair with coronavirus claimants

25 April 2020

Rt Hon. Mel Stride MP, Chair of the Treasury Committee, wrote to Huw Evans, Director General of the Association of British Insurers (ABI), on 25 March to seek answers on how the insurance sector is responding to coronavirus at a time when many will look to their insurer for both flexibility and assurance.

Chair's comments

Commenting on the response to the letter, which the ABI has published, Mr Stride said:

“The ABI has estimated that its members will pay out £900 million in business interruption claims relating to coronavirus. Yet the Committee continues to receive evidence concerning the difficulties that firms are facing in making a successful claim.
“For example, UKHospitality told us that 71 per cent of its members have had claims rejected, with only one per cent having any success.
“There may be many instances where individuals and businesses believe they are covered, but in reality may not be. However, we are concerned that the insurance sector goes the extra mile in meeting claims wherever possible. For example, where there may be grey areas within policies.
“The Committee echoes the expectations of the FCA: insurers should be clear and not misleading whenever they communicate and be fair and professional in how they deal with their customers.
“In his letter, Huw Evans raised the issue of state intervention in the future cover of pandemics. It's an important point that the Committee may choose to raise with the Chief Secretary to the Treasury during our evidence session with him next week.”

Further information

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