Why insurers need to be more honest with risk and insurance managers
Rating agencies react to UK BI ruling on COVID-19 claims
Act now to avoid future FCA test cases—CII calls for industry action
The FCA judgment on COVID-19 business interruption is in. But what is the impact for insurers, and was the judgment on September 15 really the last word on the matter? Intelligent Insurer finds out.
“The decision is quasi-political in its effect as the impact on the insurance industry is likely to be seismic.” Clive Zietman, head of commercial litigation at Stewarts.
· The test case judgment is “not a panacea for thousands of prospective disputes”
· Some claims decisions to be delayed to November or later as COVID-19-related complexity affects BI
· Court’s dismissal of ‘Orient Express’ defence will “raise eyebrows” and is likely to drive appeals
· Insurers and FCA keep options open with “leapfrog” application to appeal to the Supreme Court
It may not be the outcome insurers wanted but, according to insurers and industry experts, the UK High Court ruling is not a worst-case scenario either, and the opportunity to appeal remains open for some.
COVID-19, business interruption, BI, test case, High Court, judgment, , worst-case, scenario, FCA, Hiscox, RSA, Stewarts, Orient Express, Generali, claims