The Association of British Insurers (ABI) has rejected claims insurers favoured their big business clients in the aftermath of the August riots.

ABI Director of General Insurance Nick Starling says insurers “pulled out all the stops to help policyholders and expect to pay out around £200 million ($305 million) to help people get back on their feet”.

The “Five days in August” report, released by the government-appointed independent Riots, Communities and Victims Panel, is scathing about the performance of insurance companies.

It says small businesses and householders reported their insurance companies were difficult to communicate with – if not misleading – and failed to provide adequate support.

“The insurance industry has not performed well,” the report says. “We are concerned about the very large number of complaints we have received about the role of insurers.”

Small businesses also reported their insurance companies were slow to pay out for damaged and destroyed businesses.

“Interestingly, we did not hear the same message from the larger businesses such as the supermarket chains and nationwide retailers that we spoke to on our visits,” the panel wrote.

“There is clearly a gap, in perception at least, in the level of service received by small and larger businesses.”

The report also slams the Riot Damages Act 1886, which provides compensation for people and businesses who have suffered a riot-related loss or damage.

Insurance companies can also make claims for the losses they have incurred through paying claims, and this keeps down the cost of premiums for riot damage.

The Metropolitan Police Authority, which administers the Act, reported that 3844 claims worth between £200 million and £300 million ($457 million) have been made.

However, projections suggest nine out of 10 large claims will still not be processed by the end of March next year and only half of the smaller claims will be paid.

“The Riot Damages Act is not working,” the report says. “We did not hear of anyone who had received a payment under the Act.”

The report also found a number of businesses did not have the right kind of insurance coverage or had none at all.

Mr Starling says while the Riot Damages Act dates back to the Victorian era, “it continues to stand the test of time, and should remain in some form”.