FCA calling for COVID-19 BI evidence

The Financial Conduct Authority (FCA) has created a new webpage dedicated to sharing as much information as possible about it efforts to obtain a court declaration to resolve the contractual uncertainty around the validity of many business interruption (BI) claims arising during the Coronavirus (Covid-19) pandemic.  Brokers and their clients may access the webpage by clicking here.

As part of this launch, the FCA has also issued an invitation to policyholders of BI insurance who are in dispute with their insurers about the terms of their policies to contact the regulator, should they wish these arguments to be taken into account as part of the test case.

In particular, the FCA is asking that they be sent:

  • The policyholder’s (or their representative’s) arguments as to why they consider cover should be available in cases where they consider their insurers have not responded appropriately to a claim;
  • the wording of the policy that has not responded; and
  • brief relevant facts of the case.

The FCA is seeking policyholders’ arguments now as it intends to seek the court’s view on relevant policies as soon as possible, and it will consider all arguments and information raised with it by Wednesday 20 May 2020.  Where policyholders are a member of an action group pursuing action against an insurer or of a relevant trade body, the FCA has asked that this be clearly identified in any correspondence submitted.

Please email: biinsurancetestcase@fca.org.uk with information.

The FCA will contact policyholders if they have any queries in relation to the information submitted and will consider all arguments raised, but it has said it will not be able to respond individually to all emails sent to the above email address.

The FCA said it will regularly update this page with information on what it has done and is doing, including its invitation for policyholders with unresolved disputes to submit their arguments.