Some of the largest insurers in the UK are reportedly holding secret discussions regarding the creation of a new fund to help charities in light of the ongoing pandemic.
According to Sky News, the chairmen of major insurance companies, including Aviva, Hiscox and RSA, have been discussing the prospect of a new fund over the past several weeks.
The Association of British Insurers is also involved in the discussions, according to reports.
If the new fund goes ahead, its objective would be to donate sums to smaller charities which have been “brought to the brink of collapse” by the ongoing coronavirus crisis, according to a source that approached Sky News.
Nonetheless, sources reportedly told the news outlet that discussions over the industry-backed charitable fund remained at a “tentative stage” and may not go ahead.
A £100m figure has reportedly been mooted during the talks, though this could still “differ materially from that amount”.
Sky News said: “The fact that such a vehicle is being considered reflects the pressure that top insurance executives believe the industry is under amid suggestions it is failing to honour valid claims for business interruption cover.”
In further UK efforts to support the charity sector, the Treasury has separately pledged £750m for frontline charities affected by the pandemic, but officials in the sector have warned that the money will not prevent the demise of many smaller charities across the country.