UK lawmakers pile pressure on insurers over pandemic claims

By Huw Jones

LONDON, March 26 (Reuters) - Britain's lawmakers have piled
more pressure on insurers to show flexibility to businesses and
customers making claims during the coronavirus epidemic that
has shut down most of the economy.

The Treasury Select Committee (TSC) sent the Association of
British Insurers (ABI) a detailed list of data it wanted in
order to check that insurers are treating customers fairly.

The lawmakers said in their letter to the ABI that they
wanted to know how many of its members have stopped offering
insurance or changed the terms of existing products.

A key focus is on how much money has been paid out under
business disruption insurance.

"Can you provide an estimate of the amount of money, in
aggregate, your firms expect to pay out for business disruption
in the face of the coronavirus?" the letter said.

"Can you provide details of the approach that your members
are taking in respect of business interruption insurance, given
the government’s recent announcements concerning the effective
moment of the requirement for businesses to close?"

Britain's finance minister Rishi Sunak said last week that
government measures would be helpful to companies making claims
on policies that cover for pandemics.

The Financial Conduct Authority has told insurers that the
behaviour of customers will change due to restrictions to avoid
the spread of coronavirus, but their ability to make claims on
motor, travel and home insurance should not be affected.

The lawmakers asked for details on the flexibility insurers
can show businesses regarding cover for costs relating to
coronavirus.

"I recognise the challenges in providing this data, but I
would be grateful for a swift response, including in separate
letters if certain data and information proves easier to attain
than others," TSC Chair Mel Stride said in his letter.

The ABI had no immediate comment.

The trade body has said that insurers have already paid out
a record 375 million pounds ($448 million) to customers for
cancelled travel plans and accommodation costs due to disruption
from coronavirus.
($1 = 0.8365 pounds)
(Reporting by Huw Jones, Editing by William Maclean)