Professional body the Chartered Insurance Institute (CII) is reporting that two thirds of its members believe the FCA’s recent business interruption test case has damaged trust in the general insurance sector.
Of 142 CII members who responded to a social media survey carried out in September, 39% felt the BI test case had somewhat reduced consumers’ confidence that policies would pay out when needed, and a further 29% that it had greatly reduced consumer confidence.
A CII spokesperson suggested the poll results indicate that insurance professionals understand very well that it is not just how they act, but how the market as a whole acts, that affects consumers’ faith in insurance as a worthwhile and valuable product.
Insurers should respond to the test case, the CII says, by ‘settling claims outside the courts where possible, improving clarity standards in product governance’ and looking at ‘the role insurance can play in future pandemics, and where government liability needs to be introduced.’
The CII says it hopes ‘the recent judgement will be a catalyst for the sector to take further action, where it is needed.’
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