FCA has provided further information on what it is doing to prepare for the test case it plans to bring to clarify various uncertainties over how business interruption insurance should operate during Covid-19.
FCA notes that nothing in its actions is intended to impact on any normal claims process, and nothing will prevent individuals from using the normal channels of negotiated settlement, arbitration, privately brought court proceedings or referral to FOS. What is wants to do is to help policyholders, particularly SMEs, by putting forward their arguments to the best advantage and to save them money. The result of the test case will be binding on the insurers that are party to it in respect of the representative sample is considers, and will provide “persuasive” guidance for interpreting similar wordings and claims.
FCA is now inviting policyholders and intermediaries to engage in respect of unresolved disputes, if they wish these to be taken into account in FCA’s preparations for the test case. It is asking for facts of the case, details of the relevant policies and why cover should be available. FCA is asking for all relevant information (which will be covered by its litigation privilege) by 20 May.
Thereafter, FCA will engage with policyholders through its website and at key stages of the court action, including making public all the “pleadings”