Insurers are under substantial pressure to demonstrate their financial and operational resilience to regulators across the globe.
Government, pressure groups and the media are continuing to voice their concern over the position that insurers have taken on Business Interruption (BI) insurance cover, along with the consequent impact on potential payouts to customers. There are significant parallels to the recent issues in the banking sector on PPI and interest rate hedging. As a result of this, KPMG in the UK has been talking to insurers and brokers in the market to advise on key learnings that can be taken to limit the impact on the industry, as well as practical next steps stakeholders can take after the FCA Court Case outcome and appeal.
Differing conclusions were made in relation to each wording examined in the test case. This creates considerable uncertainty for insurers as they now have to carry out an in-depth review of their policy wordings against the judgment.
We can also expect Action Groups and Claims Management Companies to become increasingly vocal. Against this backdrop, claims will need to be considered individually on their merits and fraudulent claims dealt with. The key will be to get money paid out rapidly to those who need it the most.
To help insurers get the right outcomes for stakeholders and deliver a great customer experience, KPMG can provide a number of solutions. Through our KPMG Managed Services capacity we can take on and run BI operations for you, provide surge capacity support or bring technology to improve efficiencies in your process.
There are 4 key areas to our BI solution, leveraging technology to drive efficiencies in your response:
For support in shaping your firm’s response to BI, please get in touch via email@example.com.