Update November 2021
What has happened?
In June 2020 the Financial Conduct Authority (FCA) brought a test case in the High Court to help to resolve the uncertainty over the wording of several business interruption policies in relation to claims arising out of the coronavirus pandemic. Several insurers, including MS Amlin, agreed to take part in this test case which was heard in June.
The High Court issued its judgment on 15 September 2020.
MS Amlin along with the FCA, six insurers and an action group were granted permission to appeal the judgment issued by the High Court in September.
This appeal was heard in the Supreme Court in mid-November 2020, and the Court’s judgment was formally delivered on 15 January 2021.
MS Amlin’s decision to voluntarily take part in the FCA’s BI Test Case was driven by our desire to bring greater clarity to policyholders and the industry regarding a series of diverse and complex business interruption claims triggered by an unprecedented, ongoing event.
The Supreme Court judgment included a number of complex implications that altered previous case law, and resulted in a range of new conditions that needed to be fully assessed and interpreted, so we could determine the implications for our clients, and ourselves.
We take our responsibility to support our policyholders extremely seriously and understand the challenges and uncertainties they faced, and continue to face, as we recover from these extraordinary times.
How are we performing on claims settlement?
As of November 2021, we have received notifications from our policyholders or their brokers, in relation to 3,383 claims, where we have been able to confirm that business interruption cover is in place under the terms and conditions of their policy, and we have accepted the claim.
For each of these claims, we have asked for further information, to enable us to confirm the value or quantum of the loss incurred by the policyholder. It is only by asking these questions and analysing the answers, that we can confirm how much we should pay each policyholder.
Out of these 3,383 claims, we have received responses from 2,675 policyholders, or 79%. This means that over 20% of our policyholders have yet to give us the information we need to allow us to quantify the loss, and settle the claim, where appropriate.
From the 2,675 policyholders who have provided us with the information we need, we have provided full or interim claims settlements to over 77% of them.
So far, we have provided our policyholders with almost £75m in claims payments, to help them restore their businesses and focus on the future.
We continue to communicate with our policyholders or their brokers, asking for them to respond to our requests for this information, and we urge our policyholders to get in touch with us so we can fully assess the loss and reach an agreement on settlement.
As we do this, we have noticed a number of policyholders withdrawing their claims, for whatever reason. Noticeably we have observed a 53% increase in claims withdrawals over the last month.
What have we done about paying claims?
To save our policyholders further distress, after the Supreme Court judgment in January we assigned a loss adjuster to all open claims, and they have contacted all policyholders who have submitted a Business Interruption claim.
We chose to use loss adjustors, so that every single claim could be examined in detail by a skilled claims assessor, in what is a complex area of insurance, as well as being a highly sensitive matter due to the unprecedented impact the pandemic is having on businesses across the UK.
Once we have confirmed a policyholder has a valid claim , if for whatever reason a full assessment and final settlement will take more time, we will offer policyholders an interim payment, to provide some financial respite.
To understand more about the claims process; how it works, what information we ask for and why, please take a look at the video below.
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We continue to communicate with policyholders who have submitted a claim, either directly or via our partners, to inform them of the key factors that are taken into account when determining both the outcome of their claim, as well as the value of their settlement.
We urge policyholders to provide all requested information as part of the assessment and settlement process, and to respond to queries as soon as possible to expediate the claims payment process.
Where can policyholders find out more information?
We remain available at all times should our policyholders need to get in touch with us. If they wish to make contact they should use the details included in their policy documents.
For further information on the test case, please use the links below.
FAQ’s for policyholders
Who should I contact about my claim?
You should follow the guidance set out within your policy documents which will include contact information for making a claim.
If you have been sent a specific letter asking you to supply more information please use the contact details in this correspondence.
When will you process my claim?
Following the judgment from the Supreme Court, we remain committed to providing an outcome for all affected policyholders as quickly as possible, and we will assess all eligible claims in light of the judgment and the specific terms and conditions of your particular policy. As noted above, we are examining all eligible claims in person, to ensure we provide an accurate claims settlement figure.
I have been asked to supply information in support of my claim, how urgent is it that I send this to you?
If we have asked you for supporting information about your claim, the sooner you can send us what we need, the sooner we can fully assess your claim and confirm the outcome. We know there are many reasons why policyholders might be thinking they should wait until they have everything we’ve requested before submitting this, but we encourage you to send in what you have as soon as you can. This might make the difference between us being able to provide you with an interim payment or not.
If MS Amlin makes an interim offer, is that my only chance of receiving a claims settlement?
No. An interim offer is just that, and a final and full settlement will also be provided once all information has been received and your claim fully assessed.
I’m not happy about how my claims payment has been calculated, who can I speak to?
You can discuss your settlement with the loss adjustor appointed to your claim and they will fully explain the calculation behind the offer, and how we determined the value of the settlement.
If you remain unhappy with how this has been calculated, and believe we have been unfair in our assessment, you may wish to raise a formal complaint. If you wish to do so, complaints information is included in your policy documentation, or click here to see details of how to submit a complaint.
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UK Covid-19 Risk Assessment
As the Coronavirus situation across the globe continues, our priority is to ensure the wellbeing of our employees, customers and suppliers As such, we will continue to monitor and follow Government and Public Health England advice daily. Please see below to learn about the measures we are actively taking to reduce the Risks to our employees, customers and suppliers by mitigating the spread of Coronavirus.'