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18/05/2020

FCA Investigation into Business Interruption Insurance

On Friday the FCA made an announcement that they would allow policyholders to submit their policies and key clauses facts, concerns and arguments for consideration to be added to the Court Case.

The deadline is Wednesday 20th May 2020.

Here is the document.

Invitation to policyholders and insurance intermediaries to provide information

The coronavirus pandemic will have affected policyholders in different ways. The issues relevant to the intended proceedings will therefore be wide-ranging and complex. We recognise that the intended proceedings will better achieve our consumer protection and market integrity objectives if they cover as broad a cross section of policies and issues as is compatible with an expedited court process. We are reviewing extensive material provided by insurers to do this. 

At this stage, we are inviting policyholders and insurance intermediaries who are aware of unresolved disputes with insurers over the terms of BI policies to engage with us, if they want us to take their concerns into account as part of the test case. In particular, we invite you to put forward:

  • your arguments why you consider cover should be available, together with details of policies that you consider have not responded appropriately to a claim and
  • brief relevant facts of the case

We will consider all arguments raised.

We will treat information we receive as confidential and covered by the FCA’s litigation privilege (meaning we would be entitled not to produce it to a third party or the court).

Please email any material you want us to consider by Wednesday 20 May 2020 to: biinsurancetestcase@fca.org.uk

Here is the full link: https://www.fca.org.uk/news/statements/business-interruption-insurance-during-coronavirus

This represents a new and very welcome approach and means that we can now be really confident that we will have our day in court. The timeline is expected to mean that the Court Case will take place in July. If it goes against insurers they will of course appeal. A case of this complexity would have cost a significant amount of money, either in up-front fees or in arrears on a no-win no-fee basis.

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