The decision by Britain’s financial watchdog to stay out of business interruption dealings between insurers and companies has been welcomed as a sensible and measured approach during the current coronavirus pandemic.
Keith Richards (pictured), Managing Director of Engagement at the Chartered Insurance Institute (CII), said that in terms of handling business interruption insurance for SMEs, he welcomed the approach being taken by the Financial Conduct Authority.
Richards said today: “We welcome the FCA’s approach to business interruption insurance set out in the Dear CEO letter, including its decision not to intervene where policies do not cover pandemics.
“We also support the FCA’s focus on paying claims in a timely fashion. Each year, the CII interviews 2000 small businesses to gauge their trust in insurance. To date, SMEs who make claims have told us that their claim is usually dealt with speedily – in fact, speed of payment is one of the best performing indicators that we measure.
“However, perceptions about how quickly a claim will be dealt with among SMEs buying insurance is significantly worse – our research shows that it is one of the areas that SMEs are most concerned about.”
Richards went on to say that the insurance sector has an opportunity to demonstrate that its ability to pay claims quickly is “better than most people perceive it to be”.
He said: “We are confident that the majority of insurers will continue to build trust in the profession by delivering on their promise with a clear, accurate and timely processes that the FCA is looking for.”