Following the ruling from the Supreme Court case on the business interruption appeal, Broadway Insurance Brokers’ chief executive gives his views
The Supreme Court ruling last week in favour of policyholders is a “watershed moment” for the insurance industry.
This is according to Daniel Lloyd-John, chief executive of Broadway Insurance brokers, he told Insurance Times: “This judgment presents insurance with the biggest challenge it’s faced in many generations.
“Normally, policies only come in for intense scrutiny as a result of a severe economic downturn not a pandemic.
“This shouldn’t, though, be interpreted as a blank cheque for policyholders. What it means is that insurers will now have to demonstrate why they don’t pay out on a case-by-case basis, so there’s still a lot of work to do.”
One key aspect
He continued: “What it means is that insurers will now have to demonstrate why they don’t pay out on a case-by-case basis, so there’s still a lot of work to do.
“That process of review will absolutely underline one key aspect of insurance; namely, that no two policyholders are exactly the same.
“This case has certainly put insurers in the spotlight, but I would argue that it has significant repercussions for brokers too, in that they’re going to be asked to back up the policy recommendations which they make in the future with even more vigour.”
Despite the temptation to view the effort now required as a negative, he believes that it should be seen as an opportunity.
Lloyd-John added: “There’s been a lot of focus on the glossier elements of insurance, such as the move towards digitalisation.
“However, this juncture offers the insurance industry the chance to recapture the trust of business and private clients by proving our worth to them going forward.”