Context
In January last 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 can respond 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.
Key points to note
Some of the figures published include:
- The aggregate value of the interim/initial payments made for the 3,029 unsettled claims where such payments have been made is £307,867,384.
- The aggregate value of the payments made for the 30,176 claims where final settlements have been agreed and paid is £1,006,918,766.
- This means that, at the point of this information submission, 33,205 BI policyholders out of the 42,307 who had had claims accepted, had received at least an interim payment.
Next actions
Primarily this is provided for information, but 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.