UK – FCA: Don’t delay in paying COVID BI Claims
Friday, 09 25 2020, Category: Insurance and Reinsurance, Country: United Kingdom
In a follow-up to the High Court’s ruling on coronavirus-related business interruption claims by businesses, the UK’s Financial Conduct Authority (FCA) is advising insurers that they must pay all valid claims “in full at the earliest possible date to support business and consumers during the current situation.”
Insurers failing to do so will feel the full weight of the FCA’s regulatory power, the agency warns in a Sept. 18 “Dear CEO” letter signed by Christopher Woolard, interim chief executive of the FCA.
Insurers were instructed to provide the FCA with “at least an initial update on the implications of the judgment” by Sept. 22.
The High Court has scheduled a hearing on applications for potential appeals for Oct. 2.
The case was brought against eight insurers including Hiscox, RSA, QBE and Zurich over whether various business interruption (BI) policy wordings should cover for closures and disruption put in place due to the pandemic. The case is estimated to affect as many as 370,000 policyholders.
Source: Insurance Journal