Nearly half of all UK COVID BI claims have been at least partially paid: FCA

Nearly half of all business interruption (BI) claims related to the COVID-19 pandemic that have had claims accepted have received at least partial payment, according to the UK’s Financial Conduct Authority (FCA).

Insurers have paid out £279.9 million in 8,177 BI claims where final settlements have been agreed and paid, the FCA said.

That is in addition to a further £192 million in 2,030 unsettled claims where interim or initial payments have been made.

It means that, according to the latest available figures from March 3, 2021, insurers have paid out around £471.9 million in total. Around 10,207 BI policyholders out of the 21,140, who had had claims accepted have received at least an interim payment.

The FCA has been gathering information on all non-damage BI policies from insurers that it oversees relating to the FCA’s BI test case. Insurers have submitted their first data on their progress with BI claims to the FCA, relating only to claims and complaints on those non-damage BI policies which were affected by the FCA test case.

Did you get value from this story?  Sign up to our free daily newsletters and get stories like this sent straight to your inbox.