Allianz Insurance has made 1,832 interim and final payments to policyholders on covered business interruption claims, representing 75% of the total number.
These payments for covered business interruption claims were made from the beginning of the first lockdown in 2020 up until the end of January 2021.
Allianz revealed its total payments number following the Supreme Court’s ruling in the business interruption test case brought by the Financial Conduct Authority (FCA), which chief claims officer Graham Gibson says “provided a degree of clarity and has endorsed the decisions Allianz has made to date”.
Gibson says: “Allianz has taken a fair and balanced view on submitted Covid claims, resulting in many payments being made.”
He adds: “The [Supreme Court] judgement is very technically complex and it will take some time to digest what it means for each customer, however, Allianz has identified a small number of claims potentially affected by the case and we have contacted all customers who are affected by the judgement in line with the FCA guidelines and have already been in touch with our brokers to explain our next steps.”
Gibson goes on to say that reporting of the Supreme Court’s ruling “has raised expectations amongst many small businesses in particular”, resulting in Allianz receiving a significant increase in business interruption claims over the past three weeks, “the vast majority of which provide no cover”.
“Fortunately we have established processes in place to deal with a surge in claims caused by any major event, including online communication and additional claims handler support, as and when our business requires it.”
Gibson adds: “We are acutely aware that the coronavirus pandemic has had a severe impact on many of our policyholders and we have every sympathy with those affected. Allianz also understands that policyholders with BI cover will naturally wish to explore the question of whether or not it responds to the losses that they have suffered.”
“Equally, however, it is vital for the functioning of such insurance and for the benefit of policyholders with valid claims that Allianz should only pay claims in cases where the policy requirements are satisfied.”