FCA’s policyholder outreach on business interruption insurance
2 June 2020: as the FCA progresses its legal test case on business interruption insurance policy wording, there is an opportunity for policyholders to speak to the FCA’s legal advisers.
The Financial Conduct Authority (FCA) published an update to their business interruption insurance test case on 1 June 2020.
The update stated that businesses holding a business interruption insurance policy where claims being disputed are invited to comment on four key areas by 3pm on Friday 5 June by emailing firstname.lastname@example.org, stating the name of the relevant insurer in the subject line of the email.
The four key areas are:
- Proposed Representative Sample of Policy Wordings, a selection of policy wordings capturing key issues in dispute.
- Proposed Assumed Facts (or 'fact patterns'), which are a set of illustrative factual assumptions, for example, the nature of the affected business(es), how they were affected by the pandemic and whether they closed entirely or partially (and why). It should be noted that not all of the assumed facts will be applied to all of the representative sample of policy wordings
- Proposed Issues Matrix, shows which questions for determination by the court are engaged by each policy in the representative sample
- Proposed Questions for Determination by the court, which are a list of potential questions arising from insurers’ reasons for denying claims, and which will inform the FCA’s Particulars of Claim
Businesses can also make an appointment to speak to the FCA’s legal advisers, Herbert Smith Freehills on 3 or 4 June by emailing Herbert Smith Freehills directly at FCA@hsf.com stating 'Consultation' in the subject line of the email and stating availability in the body of the email.