Business Interruption Insurance Pandemic Test Case – Further Guidance for Insurers
22 September 2020
Following the handing down of the judgment relating to the pandemic test case last week, the consequential hearing following that judgment has been listed on the 2 October 2020. It is expected that during that hearing, appeal applications will be considered.
The Financial Conduct Authority (‘FCA’) has issued a guidance letter following the judgment. This letter, issued on the 18 September 2020, outlines what is expected from insurers: You can read this letter here.
The interim CEO of the FCA has confirmed:
“Our objective remains to ensure that slow payment does not exacerbate financial pressures on policyholders. It is important that insurers reassess and settle claims quickly, including making interim payments wherever possible on policies where the legal process is complete or the claim has been accepted in full or in part….
We believe that insurers should reflect on the clarity the judgment provides and, irrespective of any possible appeals, consider the steps they can take now to progress claims of the type that the judgment says should be paid. This should include taking all reasonable steps to ensure that all those claims are ready to be paid and settled at the earliest possible opportunity after any relevant appeals.”
The contents of this article are intended for general information purposes only and shall not be deemed to be, or constitute legal advice. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of this article.