Only one-third of policyholders who have filed a COVID-19 business interruption claim related to the Financial Conduct Authority's test case have settled with their insurance company and received full payment according to the latest figures.
Insurers have accepted 37,702 claims, but a further 9,152 policyholders are still awaiting a decision from their insurance company. Of the accepted receivables, 16,159 policyholders settled and received payments in full worth £ 467.3 million ($ 659.29 million). A further 4,188 policyholders have received interim payments totaling £ 289.6 million on outstanding claims.
In total, insurers involved in the case have paid £ 756.9 million in full or in part to policyholders against their undamaged BI protection in the UK [1
Since May, when figures were previously published, insurers have decided. an additional 2,264 receivables and paid a further £ 34 million to settle them in full. By June 5, just over half of the policyholders with accepted claims had received either an intermediate or full payment, the FCA said.
Hiscox Ltd. has the highest number of outstanding claims, where installments have been made, at 1,469, which far outweighs settled claims paid in full 537. Hiscox also has the highest number of current claims of 2,708. Of the 7,346 accepted claims from policyholders, Hiscox has settled in in its entirety by only 7%, although this rises to 27% when including intermediate / initial payments on outstanding receivables.
Canopius Managing Agency has the second highest number of current claims of 796, followed by New India Assurance Co. at 771 and ERGO Versicherungs at 614. In all these three companies, the number of claims pending a decision by the insurer exceeds the number of claims accepted. Axis Managing Agency still has a decision to make 430 claims, while Axis Specialty Europe has 284 pending claims.
More insurance and risk management news about the coronavirus crisis here . ]