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Sector
Financials
Size
Large Cap
Market Cap £13.90bn
Enterprise Value £-1.92bn
Revenue £35.00bn
Position in Universe 71st / 1819

UPDATE 1-Lloyd's, Hiscox among donors to 100 mln stg COVID-19 insurance fund -trade body

Mon 18th May, 2020 12:41pm
(Adds legal action against Hiscox, Lloyd's comment, detail)
    LONDON, May 18 (Reuters) - Lloyd's of London  SOLYD.UL ,
Hiscox  HSX.L  and RSA  RSA.L  are among donors to a new British
100 million pound ($121 million) insurance and long-term savings
COVID-19 support fund, the Association of British Insurers (ABI)
said on Monday.
    The fund is being set up as insurers like Hiscox and RSA are
under attack from small businesses who say their claims for
disruption due to the virus have been declined, prompting the
Financial Conduct Authority (FCA) to go to the courts for a
decision on the issue.
    A national lockdown to fight the coronavirus pandemic has
forced many companies to temporarily suspend operations and
furlough staff.
    The FCA said this month it would bring a test case on
whether some policy wordings indicated claims were valid and was
seeking responses from a "small number of firms" before deciding
which insurers should take part, without naming the insurers.
The case is expected to be heard by a court in July.
 urn:newsml:reuters.com:*:nL8N2CJ0ZH  urn:newsml:reuters.com:*:nL8N2CP81X
    A group of businesses seeking payouts from Hiscox said on
Sunday that it had heard from its law firm Mishcon de Reya that
legal action had a "good chance" of success and it had received
litigation funding from Harbour to pursue it. 
    The group represents more than 400 policyholders with almost
40 million pounds ($48.50 million) in claims, it said.
    Hiscox did not immediately respond to request for comment.
It has previously said it is paying valid claims quickly and
fairly.
    The insurance fund has already received 82.5 million pounds
in pledges, the ABI said in a statement, with 20 million pounds
of the money pledged so far going to The National Emergencies
Trust to support charities tackling the effects of the virus.
    The fund will also support charities helping the most
vulnerable and initiatives to promote wellbeing and mental
health, the ABI said.
    Lloyd's of London CEO John Neal said Lloyd's was making 15
million pounds in charitable donations, including five million
pounds to the support fund, and was focusing on "those charities
and people who are at the front line of our shared fight to
protect lives and beat this virus".
    ($1 = 0.8252 pounds)

 (Reporting by Carolyn Cohn; editing by Huw Jones and Jason
Neely)
 ((carolyn.cohn@thomsonreuters.com; 44 207 542 6320; Reuters
Messaging: carolyn.cohn.thomsonreuters.com@reuters.net))
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