Following the conclusion of the Business Interruption insurance test case, the FCA has published a list of BI policies capable of responding to the Covid-19 pandemic.
Back in January, the FCA sent a Dear CEO letter to insurers impacted by the business interruption insurance test case, announcing its intention to request updated details from them of all non-damage BI policies capable, in principle, of responding to the Covid-19 pandemic in light of the court judgements.
The list now published by the FCA is based on insurers’ responses to that request. The regulator has stressed that it was current and correct as of 11 March, but may be subject to further updates. The content of the list is as supplied by insurers’ and reflects insurers’ own views on how the listed policies are affected by the BI test case.
The FCA said insurers were asked to include all policies they had identified back in July 2020 (in response to a previous FCA request) as being likely to be affected by the outcome of the test case, as well as any other policies which they now deemed to have been affected.
The FCA noted that different insurers might have arrived at different conclusions as to which types of policy would or wouldn’t respond. The regulator anticipated this was most likely to be the case with policies that required policyholders to provide proof of Covid-19 being present on their premises.
The list, the FCA stressed, is purely indicative. Decisions on which policies will or will not respond in practice to individual claims will need to be arrived at, in the usual way, on a case-by-case basis.
In its Dear CEO letter, the FCA also asked insurers to communicate directly, as soon as possible, with policyholders who have made claims or complaints that could be affected by the test case judgment to explain the next steps. Consumers, meanwhile, are asked to contact their insurer or broker with any specific queries they may have.
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