It is reported that the insurer’s share price dropped more than 5 percent. The drop was after it added 185 million risk margin for Australian business interruption claims. 

ICA spokeswoman told the media “While the insurance industry is sympathetic to businesses, particularly small and medium enterprises, that have experienced hardship as a result of Covid-19 restrictions, it remains of the view that pandemics were not contemplated for coverage under most business interruption policies and that the Quarantine Act exclusion excludes Covid-19 related claims.”

In Australia, the insurer has coped with an extra hit of up to $240 million. This is again following the UK court’s ruling which was not in favour of its business interruption policies. Last year, the insurance industry found that the bulk of business interruption policies had included ‘pandemic inclusions’, media reports said. 

Small businesses in the UK won the right to insurance payouts following the country’s highest court ruled several policies that should cover losses caused by the pandemic, media reports said. Six of the world’s largest commercial insurers Hiscox, RSA, QBE, Argenta, Arch and MS Amlin have said that business interruption policies typically do not cover widespread disruption.

The post QBE expands provisions $240 mn for Covid-19 losses appeared first on International Finance.