U.K. Insurers Told Not to Deduct Rescue Funds From Covid Payouts

Money companies received under government grant programs shouldn’t be deducted from insurance payouts for losses sustained during the pandemic, according to the U.K. Treasury.

• While many insurers have said they won’t make such deductions, not all firms have signed up to this approach, Economic Secretary to the Treasury John Glen wrote in a letter to the Association of British Insurers
• “The practice of making these deductions would mean that taxpayer funds are being channeled into savings for insurers, rather than supporting businesses to ride out the disruption brought on by this pandemic,” Glen wrote
• If insurers continue to make such ...