April 7, 2020—Insurers have told various national governments that if they paid out on most business losses suffered due to the coronavirus it could risk the insurance industry, according to several reports.
A law firm in Canada has filed a national class action lawsuit against some of Canada’s largest indemnity insurers for their refusal to pay business owners for losses sustained due to the coronavirus outbreak, reported Insurance Business Magazine.
Britain’s Financial Conduct Authority has told insurance companies that the behavior of customers will change due to lockdown restrictions, according to Reuters.
Insurance companies are claiming the pandemic was an unforeseeable circumstance that excuses a part from filling a contract. The Global Federation of Insurance Associations (GFIA) said insurers were committed to paying out on policies but said they should not be asked to cover areas where no contract existed.