Pete Wishart MP has written to the Secretary of State for Business and Trade, Jonathan Reynolds, demanding urgent government action to address what he describes as systemic failures and unethical practices within the insurance industry.
The intervention comes in the aftermath of the devastating fire on Scott Street, Perth, on 14 June, which forced around 50 households and 18 businesses from their properties. Many displaced residents have since contacted Mr Wishart to report that their insurance claims are being rejected—leaving them in severe financial difficulty and uncertainty.
To address the growing crisis, Mr Wishart held a joint meeting with First Minister John Swinney MSP on Friday 27 June. The session highlighted the complexity and scale of the problems facing those impacted by the fire, particularly in dealing with uncooperative insurance providers.
While a minority of insurers have reportedly stepped up to support their clients, the majority have not. Constituents have described the situation as an “insurance lottery”, where people facing identical circumstances receive drastically different levels of support based purely on which company they are insured with.
Many have also expressed concern about an apparent cultural issue within the industry, where insurers appear to default to finding reasons to avoid paying out, rather than providing support in times of crisis.
In his letter to the Secretary of State, Mr Wishart calls on the UK Government to take robust action to hold unethical insurers accountable, challenge the harmful culture within the sector, and provide clear avenues for policyholders to contest unfair treatment.
Speaking on the issue, Mr Wishart said:
“My office has received countless testimonies from constituents who have been displaced by the fire and are receiving absolutely no help from their insurers. In response, John Swinney and I held a meeting last week to hear directly from those affected and determine what could be done to help.”
“What we found is deeply troubling. Many insurers are seizing on technicalities in policy wording to deny legitimate claims. This reflects a widespread and well-documented cultural issue in the insurance industry.”
“People pay their premiums month after month in good faith, expecting support when disaster strikes. Instead, many are being left to fend for themselves. This is completely unacceptable and is compounding the trauma and hardship these residents are already facing.”
“We know that some insurers have acted with empathy and responsibility, showing that help can be provided when there is the will to do so. What we need now is for all insurers to be held to the same standard—and for the government to ensure they are.”
The letter seeks clarity on what steps the UK Government will take to regulate industry practices, challenge unethical behaviour, and protect consumers caught in times of crisis.
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