The Association of British Insurers has again rejected claims it has failed SME customers over coronavirus-related business interruption coverage. The latest rebuttal is in its response to an open letter from James Ollerenshaw, founder of the Covid Claims Group.

ABI director general, Huw Evans insisted the market had not failed customers and pointed to forecasts that UK insurers will pay out at least £1.7bn in claims as a result of COVID-19 – including £900m to businesses and £275m to people claiming on travel insurance.

Evans did, however, agree that there is a need to find better solutions so insurance coverage can be more widespread in the event of a future pandemic.

"For such insurance to be affordable to SMEs, there would likely require significant levels of state support. But we are committed to playing our part to find a better future position than we have at the moment,” he said.

The Covid Claims Group’s open letter to the ABI, which was also published in The Times, was signed by almost 700 small business owners and accused the insurance industry of an “abrogation of responsibility” over its rejection of coronavirus-related BI claims.

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