To ask the Chancellor of the Exchequer, what steps his Department is taking to ensure that the insurance industry promptly settles claims for business interruption caused by the covid-19 pandemic.
Answered on
16 February 2021
The Financial Conduct Authority (FCA) rules require insurers to handle claims fairly and promptly and settle claims quickly once settlement terms are agreed. The FCA has said that, in light of COVID-19, insurers must consider very carefully the needs of their customers and show flexibility in their treatment of them.
The Government is pleased that a final judgment has been reached by the Supreme Court in the FCA Business Interruption test case and trust that this will provide the legal clarity urgently sought by policyholders. The FCA has set out its expectation that insurers should move quickly to resolve claims as determined by the judgment, making interim payments wherever possible.