Legal firm Mishcon De Reya, which is representing the Hiscox Action Group (HAG) and Hospitality Insurance Group Action (HIGA) their business interruption disputes with insurers, issued a statement urging firms to continue to join forces – despite the FCA’s recent intervention. The regulator announced on 1 May it would seek a court ruling on a number of disputes it believes will bring more clarity to what constitutes a valid claim, and what doesn’t. Mishcon today said until there is more clarity on its action, businesses should continue to seek strength in numbers to exert “maximum pressure” on insurers. The HAG is made up of businesses pursuing legal action against Bermuda-based Hiscox, while HIGA consists of firms with a legal dispute against a range of insurers that denied their claims.
Researcher and consultancy Capgemini released a report to show that the Covid-19 pandemic has increased the demand for coverage across health, life, and general insurance. The firm’s survey found a 10% increase in consumers looking to purchase a policy in the next six to nine months, compared to responses recorded before the outbreak.
GlobalData senior insurance analyst Daniel Pearce gave his verdict on the latest motor lines player to announce a rebate. LV= announced it has ringfenced £30m ($37m) it will target at financially struggling policyholders, but only if they can prove they’ve been materially impacted by Covid-19. The criteria for a rebate includes becoming unemployed, furloughed and yet to receive a wage subsidy or self-employed and yet to receive government support. Pearce said the approach has merit for helping the most in need, but criticised the logistics of applying for a rebate, as well as speculating that non-struggling customers may feel disenfranchised by the move, despite contributing to the reduction in claims the insurer will likely see during lockdown.