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Hiscox Action Group launches a £52 million action against insurer

Hiscox Action Group launches a £52 million action against insurer | Insurance Business

Hiscox Action Group launches a £52 million action against insurer

In the latest update to the ongoing legal action being taken against Hiscox Insurance, the Hiscox Action Group (HAG), which now represents over 600 policyholders in total, is launching a £52 million action against Hiscox Insurance for unpaid business interruption claims.

The city law firm Mishcon de Reya, which is representing the Group, has written to Hiscox on behalf of 397 HAG members outlining its intention to seek payment of £52 million of unpaid business interruption claims plus “additional claims and costs” caused by Hiscox’s “unreasonable delay in settling these claims”. This figure is predicted to grow as more group members sign up to the action and when the Insurance Act provisions relating to the late payment of claims are also accounted for.

Read more: Hiscox Action Group gets the go-ahead in business interruption tussle

A member of the HAG steering committee, Simon Ager, said: “Our claim is for both the original sums insured and the additional costs incurred because Hiscox has dragged its feet. This makes it very likely that the eventual claim will be much higher than the initial £52 million figure.”

A fellow member of the Steering Group, Daniel Duckett noted that the group hears of another member going out of business every day and that it is a “scandal” that Hiscox has not honoured its obligations by paying out on policies “that clearly should have been triggered.” The Action Group, which was set up on April 03, 2020, has now secured full funding for its legal action against Hiscox and been advised that the FCA cannot impede it in pursuing its claim against the insurer.

The founder of the Group, Mark Killick, said: “We have achieved a great deal in a very short space of time. But the real goal is to obtain justice and a fair settlement for all our members, and we remain completely focussed on delivering this outcome.”