Update FCA Test Case 05/06/2020
On the 1st May 2020 the Financial Conduct Authority gave an update on the way in which the court action being undertaken on business interruption insurance policies would proceed. They have approached 56 insurers and reviewed over 500 relevant policies from 40 insurers. From this review they have identified 17 policy wordings that capture the majority of key issues that could be in dispute. As this shows there is a lot of variation within insurance policy wordings and possible interpretations.
The FCA hope to achieve clarity for all concerned by taking the representative sample of cases to court and putting forward the policyholders' arguments. By seeking this judgement the FCA hope that policyholders and insurers will have a much clearer view of which business interruption policies respond to the pandemic and others that do not. The FCA have also outlined the expected timetable for the court case to take, please follow link to FCA website for further details. https://www.fca.org.uk/news/press-releases/update-fca-test-case-validity-business-interruption-claims
We will be keeping an eye on updates provided by the FCA on the test case and relay this via our dedicated COVID-19 webpages.
