The FCA’s test case against insurers who refused to pay out on claims for business interruption losses was appealed in the Supreme Court last week. The case has already been heard in the High Court where judges found that most, but not all, of the policies involved should pay out. The High Court only looked at 21 policy types, but the FCA estimates that around 700 policies across 60 different insurers could be affected by the outcome. The conclusion of the High Court was that 11 of the policies considered should have paid out and 2 should not. Last week the insurers appealed against the decision that 11 policies should pay out and the FCA appealed against the decision that 2 should not. Although the hearing concluded last week the Supreme Court will take some weeks to deliver judgement, but the FCA expects insurers to respond quickly if they are required to do so. Full details can be found on the FCA’s website here. To receive the latest updates subscribe here.
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