Blog: FCA Update on Business Interruption Insurance Test Case

Cooley LLP
Contact

Cooley LLP

The FCA has provided an update on progress regarding its proposed court action to resolve uncertainties about business interruption (BI) policies.

The update provides an initial list of the representative sample of policy wordings that will be examined in the action. 17 policy wordings have been selected so far, which, according to the FCA, capture the majority of the key issues that could be in dispute. 16 insurers have been identified as using at least one of those wordings. Of those, the following eight insurers have so far agreed to assist by participating in the test case:

  • Arch Insurance (UK) Limited
  • Argenta Syndicate Management Limited
  • Ecclesiastical Insurance Office plc
  • Hiscox Insurance Company Limited
  • MS Amlin Underwriting Limited
  • QBE UK Ltd
  • RSA Insurance Group plc
  • Zurich Insurance plc

These insurers have entered into a framework agreement with the FCA governing the process and the timetable. This contemplates a trial (5-10 days) in the second half of July.

The FCA has published a short consultation on draft guidance, which seeks more information from insurers about whether their policy wordings would be affected by the outcome of the case. In early July, the FCA expects to publish a full list of the insurers and the policies that may be affected.

The draft guidance also sets out the FCA’s expectations of all insurers handling BI claims pending the court’s decision.

The FCA seeks comments on the draft guidance by 5 June.

[View source.]

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Cooley LLP | Attorney Advertising

Written by:

Cooley LLP
Contact
more
less

Cooley LLP on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
- hide
- hide

This website uses cookies to improve user experience, track anonymous site usage, store authorization tokens and permit sharing on social media networks. By continuing to browse this website you accept the use of cookies. Click here to read more about how we use cookies.