Financial Conduct Authority
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Further update on Business interruption insurance test case appeals process

Our objective throughout this case has been to achieve clarity for everyone involved as quickly as possible and that remains the case. We initiated the test case with eight insurers whose policies are representative of the broader group of insurers impacted by the test case. We had hoped to reach an agreement with the insurers on the interpretation of some important elements of the judgment affecting which small businesses get paid and how much. This would have allowed for faster pay-out for policyholders with eligible claims.

However, we recognise that this case has always involved complex issues and we filed our skeleton argument with the High Court yesterday in an attempt to clarify some of these points at Friday’s hearing.

We will continue discussions with insurers and action groups, to find a solution which resolves the outstanding issues as soon as possible to enable pay-outs on eligible claims.

At Friday’s hearing, we will ask the Court to give us a certificate to apply to ‘leapfrog’ to the Supreme Court which we believe is the fastest way to get legal clarity as quickly as possible for all parties, in the event that it is not possible to resolve the outstanding issues in the coming weeks.

Notes to Editors

 

Channel website: https://www.fca.org.uk/

Original article link: https://www.fca.org.uk/news/press-releases/further-update-business-interruption-insurance-test-case-appeals-process

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