The Hiscox Action Group has received funding for its legal challenge to the insurer in the UK, after it refused to pay out on business interruption claims for Covid-19 the group believes should have been paid. Its legal representative Mishcon De Reya will have the costs of reviewing each claim met by Harbour Litigation Funding – a firm that invests in legal challenges in order to share in the final settlement if the case is won. If enough claims are identified and Harbour believes it can bank on a win in court, it will cover up to 100% of total legal costs.
Despite an expert view that litigation will follow the widespread denial of business interruption claims in the US, Boston-based Liberty Mutual has said it expects the impact of the virus on its portfolio to be like a ‘moderately-sized catastrophe loss’. CEO David Long said it expects to see more of a hit on its investment portfolio, due to the continuing market downturn caused by the pandemic situation. The firm remains cautious of legal disputes and state-level lawmaking however, which it said could worsen the hit to its balance sheet.
After several large motor insurance companies in Ireland committed to giving their customers premium relief while the roads are clear, Cavan-based Liberty Insurance – an Irish subsidiary of Liberty Mutual – announced plans to give customers €5m ($5.43m) in rebates. For individual customers, this means a refund equivalent to 15% of their premium paid over two months – but policyholders have to apply for the rebate through its website. AXA was the first of the larger players to reveal details of its refund plan in Ireland, announcing a package of €20m for its 600,000 policyholders. Reports have suggested this could break down to €30 per customer, but the giant has yet to confirm how it will distribute the rebate.