The FT has reported on Mactavish’s evidence issued to the Law Commission and HM Treasury, released this week, which suggests that 45% of businesses’ strategically significant insurance claims are disputed by the insurer. The research considered a sample of over 400 businesses with turnovers above £50m. It found that 40% of businesses had suffered a recent large or significant insurance claim and 45% of these claims were disputed; with an average settlement time of just under 3 years.
The research underpins the case for the legislation, brought before Parliament last week, to reform insurance law but also supports the arguments made by many that the proposed legislation does not go far enough in limiting the ability of insurers to dodge legitimate claims. As the FT reports, the Treasury is committed to revisiting the areas not dealt with by the current proposals and the FCA is conducting a review of the issue in the autumn.