A hard-nosed approach towards paying out on policies, particularly in relation to Covid-19 business interruption claims, has led to a surge in lawsuits being filed against the UK’s insurers, new research shows.
The number of High Court lawsuits filed against insurance companies more than tripled between 2017 and 2021, as policyholders increasingly resorted to legal action in their disputes within insurers, analysis from Mactavish shows.
The surge in lawsuits comes as insurers have become increasingly reluctant to pay out on claims, as they seek to shore up their balance sheets in the face of tougher market conditions, Mactavish chief executive Bruce Hepburn said.
