FCA makes submission to Supreme Court on BI test case declarations

The FCA has made its written submissions to the Supreme Court on the form of declarations to be made by the Court following the conclusion of the Covid-19 business interruption insurance text case.  

The declarations to be made by the Supreme Court are important as they will make explicit the Court’s view on whether the policies in the representative sample potentially cover BI losses arising from the pandemic.  

The FCA has said it expects the Supreme Court to issue the declarations without a further hearing, but that it is uncertain when this will happen.

Draft declaration have been submitted by the FCA, Arch, Hiscox, MS Amlin, QBE and RSA, and links to these can be found on the FCA website.

The FCA has previously stated that the Supreme Court’s judgement already provides insurers with the clarity they need to conclude their claims processes with the large majority of their BI customers – without waiting for the declarations.

Insurers may well take a somewhat different view. Any assumption that the wrangling is over is likely to prove premature.

If you would like to know more about this, or any other compliance-related issue, please contact a member of our expert team on 01925 765777, or email us at info@ukgigroup.com

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