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10 June 2021Insurance

AXA to pay out on thousands of BI policies for restaurants

AXA France has made an offer to settle thousands of non-damage business interruption policies with restaurants in France relating to enforced closures due to COVID-19.

The move is significant because a lack of clarity remains over whether it should settle the claims, pending judicial rulings.

AXA France said it was making the settlement offer to 15,000 restaurant owners in the “context of continuing judicial uncertainty”.

AXA estimates the cost of these settlements to be ca. €0.3 billion, gross of tax and before reinsurance. The cost of the settlements, net of tax and after reinsurance, is expected to be offset by favorable developments in 2021 related to Covid-19, in France and Europe, AXA said.

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More on this story

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11 June 2021   AXA France has made a financial offer to its 15,000 restaurant customers whose business interruption policies did not pay out for business lost during the lockdown.
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6 May 2021   While clarity is emerging around COVID-related claims for insurers, it remains unclear what claims may end up hitting reinsurers. It could simply come down to a negotiation, Wendy Kriz of Barnett Waddingham told Intelligent Insurer.
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6 May 2021   While reinsurer ratings are unlikely to be affected by claims stemming from COVID-19, there are many questions that need to be answered as to who will ultimately pay, Robert Mazzuoli of Fitch Ratings told Intelligent Insurer.