FCA COVID-19 business interruption test case verdict revealed

www.insurancebusinessmag.com
3 min read
fairly difficult
It's the decision the entire insurance industry has been waiting for
Commenting on the ruling, Christopher Woolard, interim chief executive of the FCA, commented that the case was brought to the High Court in order to resolve the lack of clarity and certainty that existed for many policyholders making business interruption claims, and the wider market.

"We are pleased that the court has substantially found in favour of the arguments we presented on the majority of the key issues," he said. "Today's judgement is a significant step in resolving the uncertainty being faced by policyholders. We are grateful to the court for delivering the judgement quickly and the speed with which it was reached reflects well on all parties."

He noted that insurers should reflect on the clarity provided here and, irrespective of any possible appeals, should consider the steps they must take to progress claims that the judgement says should be paid. They should also communicate directly and quickly with policyholders who have made claims affected by the judgement to explain the next steps.

"If any parties do appeal the judgement," Woolard said, "we would expect that to be done in as rapid a manner as possible in line with the agreement that we made with insurers at the start of this process. As we have recognised from the start of this case, thousands of small firms and potentially hundreds of thousands of jobs are relying on this."

The Hiscox Action Group (HAG), which now has over 400 members, hailed today's High Court judgement…
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