Airmic comment on BI test case update
John Ludlow, CEO of Airmic, commented...
“News that at least one of the six insurers involved in the High Court test case decision on Covid-19 Business Interruption (BI) coverage has decided not to appeal on the Marsh resilience (RSA4) policy, raises hopes that more claims can be processed without further delay, providing welcome respite for many businesses that made BI claims in the expectation that their insurers would pay out.”
Julia Graham, Airmic’s deputy CEO and technical director, continued:
“At Airmic, we cautiously welcomed the High Court’s 15 September judgment, which was particularly favourable for those policyholders with Disease clauses rather than Prevention of Access wordings, as representing some welcome good news for many policyholders representing businesses under unprecedented economic strain in 2020.
“Market turns are cyclical, and underwriters should keep squarely in mind their relationships with their insurance buyers for the future. Underwriters showing care for maintaining healthy long-term client relationships will reap the benefits once the hard market momentum dies away.”
Mr Ludlow added:
“This news is a welcome indication that insurers can show greater flexibility in the way they do business, something that will be welcome to risk managers and insurance buyers. Many of these buyers are long-term insurance partners and represent companies that are already grappling with hard market prices and harsher terms in 2020, as well as the effects of Covid and the economic downturn, whether they have made a recent BI claim or not.”