Insurance industry reacts to business interruption test case outcome
"Friday’s 112-page long verdict by the Supreme Court in the UK business interruption (BI) test case appeal has got everyone talking – from insurance companies to trade bodies, as well as law firms and other industry stakeholders.
First off, the Financial Conduct Authority (FCA) stated: “The judgement brings to an end legal arguments under 14 types of policy issued by six insurers, and a substantial number of similar policies in the wider market which will now lead to claims being successful.”
The regulator, however, highlighted that each policy must be considered against the detailed, “complex” judgement to work out what it means for any particular policy.
“The test case was not intended to encompass all possible disputes, but to resolve some key contractual uncertainties and ‘causation’ issues to provide clarity for policyholders and insurers,” explained the FCA, which initiated the proceedings in the High Court in June 2020 before the case was elevated to the Supreme Court in October."
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