U.K. Presses Insurers to Pay BI Claims
The U.K. Financial Conduct Authority (FCA) said on Jan. 22 that insurers face enforcement action if they don’t pay up as soon as possible on business insurance claims following a landmark court ruling. The U.K. Supreme Court earlier this month ruled that many business insurance policies should cover losses caused by coronavirus lockdowns.
“Where we see that insurers are not meeting the expectations set out here, we will use the full range of our regulatory tools and powers to ensure they do so,” Sheldon Mills, FCA’s executive director for consumers and competition, said in a letter to insurers’ CEOs. He added that the FCA will request data regularly from insurers on their progress in handling claims and on how many have been settled. “Our intention is to publish some of these data,” Mills said.