Association of British Insurers director general Huw Evans has hit back over claims that insurers are failing customers financially hit by Covid-19.
“Far from failing our customers”, he said insurers in the UK expect to pay at least £1.7 billion in claims as a result of Covid-19, including over £900m to businesses and £275m to people claiming on travel insurance.
His comments came in response to an open letter written by Covid Claims Group founder James Ollerenshaw, supported by more than 700 businesses, which claimed insurers had “abrogated responsibility” through denying to pay out on policies with extended coverage for interruption caused by non-physical damage.
In his response letter, Evans said: “With regard to SME purchase of non-damage business interruption extensions, I can assure you that each claim is being examined on a case by case basis by ABI members.
“Where the policy wording allows for a claim to be paid, it will be – hence the £900m our members expect to pay swiftly and with interim payments wherever possible.
“This will be on top of the average of £7.8 billion paid by insurers each year to SMEs and larger businesses for day to day risks such as fire, flooding and employee accidents.”