Industry associations have welcomed FCA’s initiative to seek Court declarations on aspects of business interruption insurance cover.
The ABI commented that, although the vast majority of policies do not cover pandemics and the Government has confirmed it would not seek to amend contracts retrospectively, it would support any process that would provide clarity for policy holders. It also noted its members have agreed a set of claims handling principles for valid claims to be paid out as quickly as possible, including interim payments. It also supported FCA’s two draft guidance consultations – saying it was pleased FCA was not seeking to impose the same solutions as for banks, given insurance products differ from banking products, and that it agrees with the need to review policies as the effects of Covid-19 unfold.
BIBA thinks the action will help resolve issues for businesses and also notes FCA’s statement that customers may still access the courts and FOS if they qualify and wish to do so.