Statement from Insurance Ireland
Issued 29 July 2021. Insurance Ireland notes the contents of today’s FSPO Digest of Decisions. The Digest includes summaries of 12 complaints relating to Covid-19 Business Interruption claims, 3 of which were upheld, 2 partially upheld and 7 rejected.
Where there is cover under Covid-19 Business Interruption policies, our members are engaging with customers and dealing with those claims quickly and efficiently. We estimate that Covid-19 business interruption claims involving our members will amount to approximately €430m once all claims are received and processed. This estimate is subject to variability as the situation unfolds and claims develop. No insurance market in the world provides widespread insurance coverage for pandemics and Ireland is no exception
Moyagh Murdock, CEO of Insurance Ireland, said: “The Covid-19 pandemic is unprecedented in its impact and will be one of the biggest insured events of recent times. We estimate that our members will pay out €430m to customers as a result of business interruption insurance related claims across a wide range of policies.
We recognise the pandemic has illustrated some uncomfortable gaps between what people expected to be covered for and what their policy was designed for. We need to learn lessons from this unprecedented event and redouble our efforts to improve consumers’ understanding and trust in insurance products.
We also understand that this is a very difficult time for businesses and that business interruption insurance is a cause of concern in the marketplace. It is a very complex issue but most policy wordings are clear in terms of what cover is provided and what exclusions are in place.
As the Governor of the Central Bank highlighted earlier in the year, there are three types of policy here. There are some where there is no cover, there are others where there clearly is cover and there is a smaller group where it is ambiguous.
No insurance market in the world provides widespread insurance coverage for pandemics and Ireland is no exception but, where there is cover, our members are engaging with customers and dealing with those claims quickly and effectively.”