Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what discussions officials of his Department have had with the Financial Conduct Authority on the effect of Government support provided in response to the covid-19 outbreak on business interruption insurance settlements.
The Financial Conduct Authority has advised that all deductions from business interruption insurance settlements should be assessed on a case-by-case basis, as insurance policies differ significantly. The individual policy wording generally sets out the basis on which the sum due to the policyholder following an insured event will be calculated.
The FCA may intervene and take further actions where firms do not appear to be meeting their expectations and treating their customers fairly on these points, and customers have recourse to the Financial Ombudsman Service if they are not satisfied.
All UK insurers have now made a commitment to not make deductions from business interruption insurance settlements to account for Covid-19 business grants.