On 22 January 2021, the FCA sent a Dear CEO letter to the insurers affected by the BI insurance test case. The letter set out the FCA’s intention to gather information from all affected insurers regulatory on the progress of their non-damage BI claims. This request included policies:
- which are, in principle, capable of responding to the Covid-19 pandemic;
- which do not represent contracts of large risk; and
- where more than five claims have been made.
The FCA has now published some of the initial data received including, at an individual firm level, the number of:
- BI claims where the insurer has received all the information required to enable them to calculate the total value of the claim;
- BI claims for Covid-19 related loss that have been accepted;
- BI claims where the insurer’s decision as to whether there is a valid claim is pending;
- unsettled BI claims where an interim/initial payment has been made to the policyholder or their representative; and
- BI claims where an offer of final settlement has been made, accepted by the policyholder, and paid in full.
The FCA will gather and publish this data each month.