Written Questions are submitted by MPs or Lords to receive information from a Department.
|5 Jul 2017, 3:58 p.m.||Terrorism: Compensation||Neil Coyle|
To ask Mr Chancellor of the Exchequer, what steps his Department is taking to ensure prompt payment of compensation by insurance companies to businesses affected by recent terrorist attacks; and if he will make an assessment of the potential merits of bringing forward legislative proposals to improve the speed with which such payments are made.
Answer (Steve Barclay)
The Government is determined that insurers should treat customers fairly and firms are required to do so under the Financial Conduct Authority (FCA) rules. The FCA sets the conduct standards required of insurance firms which aim to ensure consumers are treated fairly. This includes provisions relating to the handling of claims by insurers. The rules state that insurers must handle claims fairly and promptly; provide reasonable guidance to help a policyholder make a claim, and appropriate information on its progress; not reject a claim unreasonably; and settle claims promptly once settlement terms are agreed. Furthermore, through the Enterprise Act 2016, the Government introduced a legal requirement for claims to be made within a reasonable timescale, and created an entitlement to damages where claims are paid late.
Following discussions with the Metropolitan Police, the Treasury has formally certified the London Bridge attack as an act of terrorism, following an established legal process. This is a necessary step before any claims can be made on the terrorism reinsurer, Pool Re. The Treasury recognises the urgency of responding to requests for certification and treats this as a matter of priority.