Skip to main content
The Actuary: The magazine of the Institute and Faculty of Actuaries - return to the homepage Logo of The Actuary website
  • Search
  • Visit The Actuary Magazine on Facebook
  • Visit The Actuary Magazine on LinkedIn
  • Visit @TheActuaryMag on Twitter
Visit the website of the Institute and Faculty of Actuaries Logo of the Institute and Faculty of Actuaries

Main navigation

  • News
  • Features
    • General Features
    • Interviews
    • Students
    • Opinion
  • Topics
  • Knowledge
    • Business Skills
    • Careers
    • Events
    • Predictions by The Actuary
    • Whitepapers
    • Moody's - Climate Risk Insurers series
    • Webinars
    • Podcasts
  • Jobs
  • IFoA
    • CEO Comment
    • IFoA News
    • People & Social News
    • President Comment
  • Archive
Quick links:
  • Home
  • The Actuary Issues
  • October 2018
10

Almost half of large claims disputed by UK insurers

Open-access content Tuesday 23rd October 2018 — updated 5.50pm, Wednesday 29th April 2020

UK insurers dispute nearly half of all large commercial claims, with many businesses thought to have a poor understanding of the conditions and limitations of their policies.

2


Research from governance experts Mactavish shows that 45% of large claims are disputed and take an average of three years to resolve, with settlements typically just 60% of initial estimates.

This comes amid a strict regulatory backdrop for UK businesses, which have to comply with the Insurance Act 2015, and an update to the corporate governance code made earlier this year.

Mactavish said there is a growing danger that board members and senior directors are not aware of all the threats they face, increasing the chances that shareholders could take legal action.

"Generally speaking there is low board engagement in insurance, which is out of line with their focus on other capital instruments," Mactavish CEO, Bruce Hepburn, said.

"All chief financial officers, for example would know about their banking covenant conditions but very few would have knowledge about the limitations of their insurance cover."

This lack of knowledge around the limitations of insurance policies is reflected in research from Willis Towers Watson (WLTW), which found that many businesses could have inadequate cyber coverage.

After surveying 100 insurance and reinsurance companies, it was found that cyber-related losses under policies where cyber risk isn't specifically included, or 'silent cyber', were a "far greater risk than ever before".

The IT, utilities and telecom sector was cited as having the greatest exposure to silent cyber, with two-fifths of respondents predicting cyber attacks to account for at least ten in every hundred non-cyber covered losses in the next year.

WLTW global head of cyber risk solutions, Anthony Dagostino, said: "The 2017 WannaCry and NotPetya attacks highlighted this risk and potential damage across all business areas - causing significant concern around silent cyber.

"This increased risk perception has highlighted the need for specific cyber coverage, but competitive market conditions are limiting the scope for coverage or pricing adjustments to be made in other lines of business." 


Sign up to our free newsletter here and receive a weekly roundup of news concerning the actuarial profession


This article appeared in our October 2018 issue of The Actuary.
Click here to view this issue
Filed in
10

You might also like...

Share
  • Twitter
  • Facebook
  • Linked in
  • Mail
  • Print

Latest Jobs

Senior Catastrophe Analyst

London, England
£70000 - £100000 per annum
Reference
146055

Catastrophe Analyst

London, England
Up to £50000 per annum + + Bonus
Reference
146053

Principal Pricing Analyst

England, London
£60000 - £70000 per annum
Reference
146052
See all jobs »
 
 

Today's top reads

 
 

Sign up to our newsletter

News, jobs and updates

Sign up

Subscribe to The Actuary

Receive the print edition straight to your door

Subscribe
Spread-iPad-slantB-june.png

Topics

  • Data Science
  • Investment
  • Risk & ERM
  • Pensions
  • Environment
  • Soft skills
  • General Insurance
  • Regulation Standards
  • Health care
  • Technology
  • Reinsurance
  • Global
  • Life insurance
​
FOLLOW US
The Actuary on LinkedIn
@TheActuaryMag on Twitter
Facebook: The Actuary Magazine
CONTACT US
The Actuary
Tel: (+44) 020 7880 6200
​

IFoA

About IFoA
Become an actuary
IFoA Events
About membership

Information

Privacy Policy
Terms & Conditions
Cookie Policy
Think Green

Get in touch

Contact us
Advertise with us
Subscribe to The Actuary Magazine
Contribute

The Actuary Jobs

Actuarial job search
Pensions jobs
General insurance jobs
Solvency II jobs

© 2023 The Actuary. The Actuary is published on behalf of the Institute and Faculty of Actuaries by Redactive Publishing Limited. All rights reserved. Reproduction of any part is not allowed without written permission.

Redactive Media Group Ltd, 71-75 Shelton Street, London WC2H 9JQ