Accenture’s managing director for general insurance believes now is the time ‘to do a more holistic and proactive review’ of insurance contracts to remove ambiguities surrounding potential ‘black swan’ events
The ambiguity in business interruption (BI) policy wordings related to Covid-19-based claims is “natural”, however this debate should be used as a catalyst for the insurance sector to proactively review contract small print in order to eliminate unclear phrasings that may prove problematic for insurers if applied to future “black swan events”, says Max Richter, managing director for general insurance at professional services firm Accenture.
Richter compares the current discussions around BI policies to similar conversations that occurred around cyber cover within property insurance wordings, for example. He explains that events such as the Covid-19 pandemic, therefore, act as a spotlight to reveal industry areas that need fine tuning and finessing.
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