Zurich claims its BI wordings not triggered in COVID-19 FCA test case
Zurich Insurance Group, one of the eight insurers directly involved in the Financial Conduct Authority’s (FCA) business interruption (BI) test case, claims that its wordings do not provide cover for BI in relation to the COVID-19 outbreak as per the court judgment.
The insurer has welcomed the UK High Court judgment that ruled in favour of the arguments advanced for policyholders by the FCA on the majority of the key issues.
Zurich said that although it witnessed a limited level of disputes over its coverage, the court judgment confirms that its wordings have not been triggered.
The insurer said it is "reviewing the full implications of the judgment" in relation to other wordings examined in the FCA test case.
It stated that the resulting increase in the group's COVID-19 related property & casualty claims cost estimate of $750 million for the full-year 2020 will not be material to the group’s earnings.
Zurich group chief executive Mario Greco said: “While we welcome the judgment of the High Court in respect of Zurich’s wordings, we recognize that COVID-19 has caused immense suffering for our customers, their families and their businesses. We will continue to do all we can to support our customers and our communities at this time.”
