CII creates a riot claims guide

The Chartered Insurance Institute (CII) has launched a guide for the compensation of claims in the event of a riot.

CII’s Riot Claims Handling Best Practice Guide was created in conjunction with the Home Office and sets out core procedures and technical guidance for handling compensation claims against local policing bodies for riots damage.

The Association of British Insurers, Chartered Institute of Loss Adjusters and the police also had significant input into the creation of the guide.

Insurers paid out approximately £200 million in claims following the 2011 riots, which also prompted the introduction of the Riot Compensation Act (RCA) in 2016, whose application the new guide concerns.

The guide is accompanied by a more detailed report, which sets out a high-level model for RCA claims management in the event of a large-scale riot, recommendations on a range of issues relating to RCA claims, and a look at how social media can act as a catalyst for the spreading of riot activity.

Jeremy Trott, non-executive director of CII’s recently created Society of Claims Professionals and head of claims operations at Allianz, said: “In an ideal world, the guidance in this guide will never be used. But it would be irresponsible for the authorities and claims insurers to not plan for the worst.”

“The 2019 Riot Claims Handling Best Practice Guide was the result of a collaboration between CII and the Home Office and outlines core procedures which can be enacted quickly in the event of social unrest.”

“During the 2011 riots, 30,000 businesses were estimated to have suffered a loss of trading profit and record numbers of claims were paid out by insurers. The linchpin of this report is not to predict if a riot will happen—no one has a crystal ball—but to be fully prepared in the event of one.”

Patrick Hayward, the new generation claims group member co-responsible for compiling the accompanying report, said: “The new guide will help to ensure that decisions made by claims handlers deliver fair outcomes for riot victims and help to address some of the key challenges in applying the rules that were faced by claimants and handlers alike following the 2011 riots.”

Mark Dugdale