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UK insurer BI claim settlements top $600 million

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UK insurers have paid out £352.1 million ($634.8 million) in business interruption claim final settlements following the test case judgment earlier this year, the Financial Conduct Authority (FCA) says.

The figure, up from £279.8 million ($504.4 million) in March, is included in the second of a series of monthly data releases the FCA is publishing in the wake of a Supreme Court appeal decision largely in favour of policyholders.

Insurers have also paid out £247.7 million ($446.6 million) in initial or interim payments for unsettled claims, the latest figures show.

Final settlements have been made for 10,722 claims while part payments have been made for 2898 claims.

A break-down for individual insurers shows QBE’s European and UK businesses have accepted 2521 claims. They have received all the information needed to calculate the total value of the claim on 591 of those and have made full or partial payments on 399.

More than 40 insurers have provided figures to the FCA, which is gathering data on policies in principle capable of responding to the COVID-19 pandemic, which don’t represent large risk contracts and where more than five claims have been made.