The Government has not made an assessment of the total monetary value of insurance company deductions from business interruption insurance payouts.

The Supreme Court published its final judgment in the FCA’s Business Interruption Insurance test case in 2021. At the time of the judgment, the FCA set out its expectation that insurers should communicate to all impacted policyholders what the judgment meant for their claim and should move quickly to resolve claims as determined by the judgment.

The FCA court case did not cover all potential issues with business interruption policies. The FCA has been clear that, in the event of further court rulings, insurers will need to consider carefully how the rulings impact claims they have already decided.

The FCA is continuing to supervise firms to ensure they are meeting their expectations and has robust powers to take action where necessary.

The Government has not made an assessment of the total monetary value of insurance company deductions from business interruption insurance payouts.

The Supreme Court published its final judgment in the FCA’s Business Interruption Insurance test case in 2021. At the time of the judgment, the FCA set out its expectation that insurers should communicate to all impacted policyholders what the judgment meant for their claim and should move quickly to resolve claims as determined by the judgment.

The FCA court case did not cover all potential issues with business interruption policies. The FCA has been clear that, in the event of further court rulings, insurers will need to consider carefully how the rulings impact claims they have already decided.

The FCA is continuing to supervise firms to ensure they are meeting their expectations and has robust powers to take action where necessary.

The owners or operators of subsea cables and other off-shore assets are responsible for the insurance of their assets.

There is a wide variety of insurance products available in the UK market, including from speciality insurers. The government would always recommend the companies shop around, or engage the services of a specialist broker, to ensure they can access the cover they need at the best price.

The government recognises that cyber insurance is an important tool for businesses' economic resilience. HM Treasury works closely with industry, regulators, other government departments and relevant stakeholders to monitor insurance markets, including cyber. Cyber insurance is widely offered in the UK insurance market and the government would encourage businesses to shop around, or employ the services of a broker, to find the most appropriate cover, at the best price.

The terms of individual leases determine when freeholders can pass on insurance costs to leaseholders. This remains the case even if there is a delay to remediating the building.

We are pushing for faster remediation as set out in the Remediation Acceleration Plan. We also intend to make it a criminal offence, and apply civil sanctions, against those who fail to remediate their unsafe buildings - including freeholders. Freeholders who delay works can expect swift and robust enforcement action from regulators, with the full support of government.

We remain committed to ensuring residents have access to information regarding their buildings insurance and can challenge unreasonable costs. Under the Leasehold & Freehold Reform Act we are making sure landlords provide leaseholders with information about their building’s insurance.

In England, most National Health Services are covered by the state indemnity schemes administered by NHS Resolution. Therefore, midwives working in NHS trusts, other member organisations, and general practices are covered by the state indemnity schemes, namely the Clinical Negligence Scheme for Trusts (CNST) and the Clinical Negligence Scheme for General Practice, respectively. Where self-employed midwives are not covered by state schemes, they need to obtain independent cover which is mainly through regulated insurance or via discretionary indemnity offered primarily by medical defence organisations.

In 2020, the difficulty in accessing indemnity was highlighted by self-employed midwives. Alternative arrangements were agreed via an NHS contract which enabled self-employed midwives to be covered by the state scheme, the CNST. A number use this model, although we understand some do not.

The Department is currently considering policy measures to address gaps in the clinical indemnities system. We would be happy to take further evidence from self-employed midwives to determine issues specific to them and the scale of the problem.

Assessments of External Wall Systems are required by some mortgage lenders to assist in the valuation of high-rise residential buildings for mortgage purposes. The Royal Institution of Chartered Surveyors (RICS) designed and implemented the EWS1 form in conjunction with mortgage lenders to assist with this. Use of the EWS1 form is determined by the lending policies of banks and building societies. RICS have issued guidance on the use of the EWS1 form.

The Department is aware that there are capacity challenges with the availability of professionals to undertake fire safety assessments of external wall systems. We are working with professional bodies to increase the number of skilled professionals who can undertake external wall assessments where one is required.

The EWS1 process was introduced by industry to assist in the valuation of high-rise residential buildings for mortgage purposes. Not all lenders request an EWS1 form and the Government does not support a blanket approach in EWS1 for lower risk properties. The Department is encouraging lenders to accept a broader range of evidence to assure themselves of a building’s safety. This could include a fire risk assessment that includes external walls or a recent building control certificate.

The Department published advice from the Independent Expert Advisory Panel in January advising all building owners to ensure that their buildings are safe and that this should include the building’s external walls regardless of height. This was guidance for building owners, not lenders or insurers. To support the valuation process for high-rise residential blocks, the Royal Institution of Chartered Surveyors designed the EWS1 process. This is not a regulatory requirement and we are working with lenders and professional bodies to support a pragmatic approach, especially for lower rise blocks.

The Government is in continual dialogue with the insurance sector to understand and influence its response to this unprecedented situation and is encouraging insurers to do all they can to support customers during this difficult period.

The Government is working closely with the Financial Conduct Authority (FCA) to ensure that the rules are being upheld during this crisis and fully supports the regulator in its role. The FCA rules require insurers to handle claims fairly and promptly; provide reasonable guidance to help a policyholder make a claim; not reject a claim unreasonably; and settle claims promptly once settlement terms are agreed. In addition, the FCA has said that, in light of COVID-19, insurers must consider very carefully the needs of their customers and show flexibility in their treatment of them.

However, it is important to note that most businesses have not purchased insurance that covers losses from non-property damage. Additionally, while some policies cover losses arising from any disease classed as notifiable by the government, or a denial of access to a building, most of these policies only cover a specific list of notifiable diseases or an incident specifically on the premises of the business. Insurance policies differ significantly, so businesses are encouraged to check the terms and conditions of their specific policy and contact their providers. The terms of a policy cannot be changed retrospectively.

The Government encourages businesses to seek assistance through the wider support package if they are in financial difficulty. Businesses should explore the full package of support set out by the Chancellor in recent weeks, including measures such as business rates holidays, the Coronavirus Business Interruption Loan Scheme, and wage support.

There is nothing in current legislation in the Reinsurance (Acts of Terrorism) Act 1993 that prevents insurers from offering terrorism insurance beyond property damage to businesses, and indeed such products exist on the market.

That said, I understand the concerns that businesses have raised about terrorism insurance cover for business interruption losses that are not linked to damage to commercial property and want to do everything we can to help. The Treasury remains in discussions with the insurance industry, Pool Re and other interested parties to ensure that the Act continues to enable appropriate terrorism cover to be available for all businesses in the UK.

We are actively exploring options, including legislation, to address this and will confirm our next steps in due course.

There is nothing in current legislation in the Reinsurance (Acts of Terrorism) Act 1993 that prevents insurers from offering terrorism insurance beyond property damage to businesses, and indeed such products exist on the market.

That said, I understand the concerns that businesses have raised about terrorism insurance cover for business interruption losses that are not linked to damage to commercial property and want to do everything we can to help. The Treasury remains in discussions with the insurance industry, Pool Re and other interested parties to ensure that the Act continues to enable appropriate terrorism cover to be available for all businesses in the UK.

We are actively exploring options, including legislation, to address this and will confirm our next steps in due course.

There is nothing in current legislation in the Reinsurance (Acts of Terrorism) Act 1993 that prevents insurers from offering terrorism insurance beyond property damage to businesses, and indeed such products exist on the market.

That said, I understand the concerns that businesses have raised about terrorism insurance cover for business interruption losses that are not linked to damage to commercial property and want to do everything we can to help. The Treasury remains in discussions with the insurance industry, Pool Re and other interested parties to ensure that the Act continues to enable appropriate terrorism cover to be available for all businesses in the UK.

We are actively exploring options, including legislation, to address this and will confirm our next steps in due course.

Treasury Ministers and officials have meetings with a wide variety of organisations in the public and private sectors as part of the process of policy development and delivery.

Details of ministerial and permanent secretary meetings with external organisations on departmental business are published on a quarterly basis and are available at:

https://www.gov.uk/government/collections/hmt-ministers-meetings-hospitality-gifts-and-overseas-travel

The government remains in regular discussion with the insurance industry, Pool Re and other interested parties on the provision of terrorism insurance in the UK.

BEIS Ministers and officials have meetings with a wide variety of organisations in the public and private sectors as part of the process of policy development and delivery.

Details of ministerial and permanent secretary meetings with external organisations on departmental business are published on a quarterly basis and are available at: https://www.gov.uk/government/collections/beis-ministerial-gifts-hospitality-travel-and-meetings

There is nothing in current legislation in the Reinsurance (Acts of Terrorism) Act 1993 that prevents insurers from offering terrorism insurance beyond property damage to businesses, and indeed such products exist on the market.

It is up to businesses to decide what risks they would like to be insured against, and for insurers to assess the extent of the risks they are willing to cover. The Government does not generally intervene in these commercial decisions by businesses and insurers.

That said, we remain in discussions with the insurance industry, Pool Re and other interested parties to ensure that the 1993 Reinsurance Act continues to enable appropriate terrorism cover to be available for all businesses in the UK.

I am due to meet the Honourable Member shortly and I am happy to discuss his questions in further detail.

There is nothing in current legislation in the Reinsurance (Acts of Terrorism) Act 1993 that prevents insurers from offering terrorism insurance beyond property damage to businesses, and indeed such products exist on the market.

It is up to businesses to decide what risks they would like to be insured against, and for insurers to assess the extent of the risks they are willing to cover. The Government does not generally intervene in these commercial decisions by businesses and insurers.

That said, we remain in discussions with the insurance industry, Pool Re and other interested parties to ensure that the 1993 Reinsurance Act continues to enable appropriate terrorism cover to be available for all businesses in the UK.

I am due to meet the Honourable Member shortly and I am happy to discuss his questions in further detail.

There is nothing in current legislation in the Reinsurance (Acts of Terrorism) Act 1993 that prevents insurers from offering terrorism insurance beyond property damage to businesses, and indeed such products exist on the market.

It is up to businesses to decide what risks they would like to be insured against, and for insurers to assess the extent of the risks they are willing to cover. The Government does not generally intervene in these commercial decisions by businesses and insurers.

That said, we remain in discussions with the insurance industry, Pool Re and other interested parties to ensure that the 1993 Reinsurance Act continues to enable appropriate terrorism cover to be available for all businesses in the UK.

I am due to meet the Honourable Member shortly and I am happy to discuss his questions in further detail.

There is an established legal process for the Treasury to certify an act of terrorism for insurance purposes, following formal notification by Pool Re. The Treasury recognises the urgency of responding to requests for certification and treats this as a matter of priority.

After the Treasury has issued their certification, it is up to insurers to process any claims from their customers. They will make an assessment based on the evidence available and the insurance coverage purchased by the customer.

The Financial Conduct Authority (FCA) sets the conduct standards required of insurance firms to ensure that these customers are treated fairly, including provisions relating to the handling of claims. The FCA has the power to punish insurers if they are found to be delaying payments unnecessarily. Furthermore, the Enterprise Act 2016 introduced a legal requirement for claims to be made within a reasonable timescale, and created an entitlement to damages where claims are paid late.

I am due to meet the Honourable Member shortly and I am happy to discuss his question in further detail.

The Government is determined that insurers should treat customers fairly and firms are required to do so under the Financial Conduct Authority (FCA) rules. The FCA sets the conduct standards required of insurance firms which aim to ensure consumers are treated fairly. This includes provisions relating to the handling of claims by insurers. The rules state that insurers must handle claims fairly and promptly; provide reasonable guidance to help a policyholder make a claim, and appropriate information on its progress; not reject a claim unreasonably; and settle claims promptly once settlement terms are agreed. Furthermore, through the Enterprise Act 2016, the Government introduced a legal requirement for claims to be made within a reasonable timescale, and created an entitlement to damages where claims are paid late.

Following discussions with the Metropolitan Police, the Treasury has formally certified the London Bridge attack as an act of terrorism, following an established legal process. This is a necessary step before any claims can be made on the terrorism reinsurer, Pool Re. The Treasury recognises the urgency of responding to requests for certification and treats this as a matter of priority.