UK Brokers have given the industry a massive thumbs down on the way in which it has handled the issues arising from COVID-19 business interruption claims.
Research agency, FWD Research, has released the results of its first results from its Insurance Brokers Pulse-Point Tracker (PPT) which found two thirds of UK brokers believe the insurance industry has not reacted well enough to ensure consumers and businesses have the necessary coverage to navigate the current pandemic.
FWD described PPT as a “COVID-19-focused industry confidence barometer” and the results of its research find some brokers willing to issue a damning verdict in the way the industry has reacted.
One told researchers: “The industry was deadly silent for the first two weeks but they should not have been.”
The research found almost all of the brokers questioned agree that all insurance wording need to be reviewed as a result of COVID-19.
Despite steps to redefine its future shape significant number of brokers say they have concerns over policy wordings from Lloyds of London and the London Market than other markets.
The majority of brokers also believe, in the wake of the pandemic, that unoccupied premises wordings need an urgent review.
Simon Staplehurst, Senior Research Director of FWD Research said: “When it comes to the long term outlook, there were a number of ongoing concerns over the success of some of their customer groups, particularly across some micro and small SMEs and their own jobs, with a quarter of brokers feeling uncertain about job security. However, the survey found only 1% of brokers have had to make redundancies and a third of brokerages have put staff on furlough.”
Mr Staplehurst added: “Business confidence remains focused more on business survival rather than anything else, particularly as brokers are predicting that they could lose nearly a quarter of their new business GWP this year.”