Insurance

UK insurer sees 25,000 COVID-19 claims from March to end April

By Amir Sadiq

RSA Insurance Group (RSA) estimates that it has received about 25,000 COVID-19 related claims from March to end April, of which roughly 23,000 are travel claims.

“The great majority of business interruption claims are not expected to be eligible under their coverage terms for COVID-19. However, there are a number of areas where claims are being paid, mostly in certain specialist schemes and programmes,” it said.

This includes travel claims with estimated costs of GBP16m gross of reinsurance, claims for wedding cancellation with an estimated reserve of GBP7m, and claims under certain business interruption and related coverages with an estimated claims reserve of about GBP17m.

RSA is also expecting a COVID-19 effect on written premium income for 2020, as some customers reduce their coverage reflecting changed needs, and various rate adjustment and other programmes impact.

“There will likely be an increase in bad debt from customers, and we are actively working with those in most need on payment spreading plan,” it said.

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