Written Questions are submitted by MPs or Lords to receive information from a Department.
|7 Sep 2017, 4:46 p.m.||Business: Terrorism||Neil Coyle|
To ask Mr Chancellor of the Exchequer, what steps his Department is taking to ensure that businesses affected by terrorism do not experience unnecessary delays in receiving payments from insurance providers.
Answer (Steve Barclay)
There is an established legal process for the Treasury to certify an act of terrorism for insurance purposes, following formal notification by Pool Re. The Treasury recognises the urgency of responding to requests for certification and treats this as a matter of priority.
After the Treasury has issued their certification, it is up to insurers to process any claims from their customers. They will make an assessment based on the evidence available and the insurance coverage purchased by the customer.
The Financial Conduct Authority (FCA) sets the conduct standards required of insurance firms to ensure that these customers are treated fairly, including provisions relating to the handling of claims. The FCA has the power to punish insurers if they are found to be delaying payments unnecessarily. Furthermore, the Enterprise Act 2016 introduced a legal requirement for claims to be made within a reasonable timescale, and created an entitlement to damages where claims are paid late.
I am due to meet the Honourable Member shortly and I am happy to discuss his question in further detail.