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Small Businesses: Insurance

Question for Treasury

UIN HL8954, tabled on 29 June 2023

To ask His Majesty's Government what steps they are taking to ensure that small businesses receive pay-outs on their COVID-19 business interruption insurance claims.

Answered on

11 July 2023

The Government continues to work closely with the independent Financial Conduct Authority (FCA) to monitor any widespread non-compliance with regulator rules.

Under FCA rules, insurers are required to handle claims fairly and promptly and settle claims quickly once settlement terms are agreed. The Government supports the FCA taking further action where firms do not meet these expectations.

Policyholders who feel that their claim has not been handled fairly may be able to refer the matter to the Financial Ombudsman Service, an independent body set up to provide arbitration in such cases.

Answered by

Treasury