Latest News

Whilst we all navigate our way through these unprecedented times, we would like to provide some important advice and insight in order to help you through the tough times ahead.

MAY 2020

A Message from Managing Director - David McGowan

"Whilst we all navigate through these difficult and testing times, Woodward Markwell would like to provide some important advice and insight, in order to help you through the tough times ahead."

David McGowan

Insurance News

It’s an understatement to say that we are  currently  in an extremely unusual and difficult time, I hope everyone, and their nearest and dearest, who read this email are well and are safe.

Moving away from our own family and friends and to the world of insurance we find it is an interesting time for our industry and Insurers Companies are under significant pressure from clients and also from government to assist in the economic losses felt by businesses. We are seeing a number of FTSE listed Insurance companies potentially exposed to claims for Covid-19.

It is an interesting time for our industry,  it is struggling to respond to this pandemic positively as their policies were never designed or intended to pick up this type of claim. Where there is potentially cover, it is usually down to default or a policy wording that is vague or silent, therefore the technicality of cover, on these policies, are being looked into with a fine-tooth comb by insurers, clients, FCA and solicitors. 

We are finding that the vast majority insurers are declining claims at this stage however we are seeing the insurance industry being put under a lot of pressure from the government, clients and action groups. The insurance industry has hit back saying that if their policies were deemed to cover this then it could make them insolvent, also if they were force to retrospectively cover this pandemic it would make many insurers insolvent and cause massive premium increases for those insurance companies left.

The Financial Conduct Authority (FCA) has also confirmed in a statement:-

Based on our conversations with the industry to date, our estimate is that most policies have basic cover, do not cover pandemics and therefore would have no obligation to pay out in relation to the Covid-19 pandemic. Whilst this may be disappointing for the policyholder we see no reasonable grounds to intervene in such circumstances.

I would refer you to the following published articles and statements for some background information to the insurance situation:-

If you wish Woodward Markwell to check your policy wording or to make a claim please do not hesitate to contact us or your Account Executive.