Thousands of cancelled weddings across the UK will cost insurer RSA an estimated £7 million in claim payouts as it revealed the claims hit from Covid-19 on Thursday
The firm, led by Stephen Hester, is a significant insurer of UK weddings, offering cover if the big day is cancelled due to venues closing down.
The UK Government has banned weddings and forced many venues to shut, triggering policies designed to cover the cancellation of weddings.
Hester said the wedding hit was a “manageable number”.
The cost of getting hitched has soared in recent years, with the average wedding now costing £32,000, leading to higher levels of demand for insurance.
In total Covid-19 claims will cost RSA £25 million net of reinsurance, mostly from travel claims.
Of the 25,000 claims, RSA said 23,000 related to travel claims mostly from its Canadian business.
Business interruption insurance, which has led to disagreement between some customers and insurers, will cost an estimated £17 million.
The product has become a lightening rod for criticism due to the vague wording of many policies, and arguments over whether the coronavirus lockdown trigger payouts.
Hester said: "It’s important to underline that it did not intend to underwrite pandemics, it did not charge premiums to underwrite pandemics and as a result the great majority do not respond to pandemics."
