Update on Business Interruption Test Cases
Wed Oct 28 2020
As of 22 October 2020, it has been reported that six of the insurers involved in the FCA business interruption test case have decided not to appeal the UK High Court decision in respect of some policy wordings. However, Appeals will be pursued in respect of other policy wordings.
The FCA has on its website a section devoted to the business interruption test case: https://www.fca.org.uk/firms/business-interruption-insurance
Brokers interested in the case should check this website for updates. The FCA has published the High Court declarations made in the test case. These are the culmination of the test case judgment and declare how and to what extent the policies in the representative sample respond to business interruption losses arising from the COVID-19 pandemic.
The FCA expects to shortly to publish a guide to the declarations for policyholders, which is likely to be required reading.
Judgement in the Irish FBD test case is to be handed down in January 2021, with the hearing before Mr Justice McDonald having concluded last week. Brokers Ireland has been monitoring this case with interest and we intend to provide a webinar to members on this issue once the judgement has been handed down.