ABI revisits summer riots
by Gill Montia
Story link: ABI revisits summer riots
Six months on from the summer riots, the Association of British Insurers (ABI) has issued an update on the progress insurers have made in settling claims.
So far, eight in ten claims for damage under household policies have been settled and over seven in ten businesses have seen their claims for property damage settled, or have received interim payments.
Other key facts are as follows:
The majority of insurance claims resulting from the riots are larger claims from bigger business.
Most smaller property damage claims for homes and smaller businesses have already been settled.
The nature of larger more complex commercial claims, such as business interruption, means they will take longer to settle, requiring, for example, comparisons with similar trading periods.
A number of sites were designated crime scenes for a significant period of time in the immediate aftermath of the riots, delaying access to the site for both the customer and the insurer.
A number of buildings that were damaged, especially by fire, will require local authorities to make planning decisions about rebuilding and this process may take time.
In some cases, damage to historic and/or listed buildings may add further delay. In some places there may also be discussions about urban regeneration, adding further delay to the rebuilding process.
The ABI’s director of general insurance, Nick Starling, comments: “Unsurprisingly, the bulk of outstanding riot claims are for large commercial customers.”
Adding: “Insurers worked to get as many of these businesses back to trading as quickly as possible and continue to focus efforts on settling these more complex claims, which can take some time.”