Orkney and Shetland MP, Alistair Carmichael, has written to the Association of British Insurers (ABI), calling for them to review the response of insurance companies to the coronavirus crisis. The letter, backed by Scottish Liberal Democrat MPs and MSPs, highlights the concerns of local businesses, many of which face bankruptcy within weeks due to business disruption from the coronavirus, and calls for closer cooperation.
Mr Carmichael said:
“It is time for the ABI to take a second look at how insurers are supporting business during this crisis. I hear on a daily basis from small businesses in my community who are looking for help from their insurance providers. Some of these enterprises may face bankruptcy within weeks and the consequences of mass closures will create shockwaves across the economy.
“I understand the concerns of insurers about paying out. It is worth recognising though that if businesses do not see any benefit to their insurance policy now then they are going to quite reasonably question the value of that insurance policy. This is about taking the long view and recognising that a little bit of cooperation today can help everyone prosper again tomorrow.”