LATEST UPDATE: 01.10.2020 FROM THE FCA
Our objective throughout this case has been to achieve clarity for everyone involved as quickly as possible and that remains the case. We initiated the test case with eight insurers whose policies are representative of the broader group of insurers impacted by the test case. We had hoped to reach an agreement with the insurers by today on the interpretation of some important elements of the judgment affecting which small businesses get paid and how much. This would have allowed for faster pay-out for policyholders with eligible claims.
However, we recognise that this case has always involved complex issues and we have filed our skeleton argument with the High Court today in an attempt to clarify some of these points at Friday’s hearing.
We will continue discussions with insurers and action groups, to find a solution which resolves the outstanding issues as soon as possible to enable pay-outs on eligible claims.
At Friday’s hearing, we will ask the Court to give us a certificate to apply to ‘leapfrog’ to the Supreme Court which we believe is the fastest way to get legal clarity as quickly as possible for all parties, in the event that it is not possible to resolve the outstanding issues in the coming weeks.
PREVIOUS STATEMENT
Just in from the FCA;
The deadline for parties to the Financial Conduct Authority’s (FCA) Business Interruption insurance test case to file a ‘leapfrog’ application to appeal to the Supreme Court any aspects of the High Court’s Judgment was yesterday, Monday 28 September 2020.
The FCA today confirms that it has filed a ‘leapfrog’ application to appeal to the Supreme Court. The FCA’s intention has, throughout the process, been to achieve clarity on affected BI policies at speed. The FCA believes that clarity was provided in the initial judgment handed down on 15 September.
The FCA therefore continues to work closely and at speed with the eight insurers and two intervenors that participated in the test case to reach an agreement in principle on a range of issues whereby an appeal process would not be required, and payments would be made on eligible claims as soon as possible. Positive discussions continue with all parties.
The FCA’s ‘leapfrog’ application has been filed on a precautionary basis in the event that this agreement is not reached by close of business Wednesday. The FCA understands that seven insurer parties have made similar precautionary applications.
The FCA will provide an update to this situation as soon as is possible.
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