A new wave of lawsuits triggered by the pandemic has damaged insurers’ standing.
Our unprecedented analysis of claim disputes reveals the extent to which insurers are failing to pay out on claims as the market continues to harden.
While legal claims were already rising steadily before 2020, the pandemic acted as a trigger for a new wave of litigation driven by business interruption cases with many companies accusing providers of unfairly refusing to pay out claims.
Legal claims brought against insurance companies surge by nearly 280%
Mactavish warns that not only is the industry further damaging its reputation and eroding its relationship with customers, but the jump in legal battles could harm the wider economy.
“If businesses do not have confidence in the insurance market, they are less likely to take the kind of business risks that are required to maintain economic growth”
