Blow for insurers in landmark case over Covid payouts
Several publications are reporting on the news this morning that the Financial Conduct Authority (FCA) has claimed a “partial victory”, according to the Daily Telegraph, against eight insurers over their refusal to pay out on claims by businesses decimated by the coronavirus pandemic.
As reported in The Times, the High Court has found in favour of policyholders on “key issues” in a landmark test case intended to clear up whether businesses have valid insurance claims related to Covid-19. The result could mean tens of thousands of business are in line for payouts on their business interruption policies. The article adds that the insurance industry is expected to appeal the judgment. The case was brought by the Financial Conduct Authority to help to work out which policies should be honoured to “achieve clarity for all concerned in an unprecedented situation” after the industry declined to pay out claims in the wake of the pandemic. This is also being reported in This is Money, BBC News, and the Daily Express.