HISCOX DENIES ALLEGATION OF SLOW BI PAYOUT

Hiscox has denied an allegation it has delayed paying out its first tranche of Covid-19-related business interruption compensation. According to a story in The Sunday Times only a small number of claims from businesses that were forced to close because of the lockdown have so far received an offer of payment. The story also alleged some of Hiscox’s settlement offers were less than adequate for the needs of the claimants. The accusation came in the wake of the January 2021 decision in the UK Supreme Court that substantially ruled insurers should pay disputed business interruption claims. Hiscox was one of the six defendants in the Supreme Court case. Following the ruling, Hiscox upped its 2020 estimate for Covid-19-related business interruption losses. However, a Hiscox spokesperson told Insurance Day: “We are paying claims as quickly as possible in line with the Supreme Court judgment. In total, we expect to pay out $475m in Covid-19 claims, including for business interruption.”