FCA GETS GO-HEAD FOR FAST-TRACKED COVID-19 BI TEST CASE

The UK’s insurance regulator has been given the go-ahead to proceed with its expedited test case against eight insurers, aimed at resolving disputed Covid-19 related business interruption claims. Following the first case management conference on June 16, Justice Butcher ordered the case be expedited, with an eight-day court hearing scheduled for July 20-23 and 27-30. The case will be presided over by Lord Justice Flaux and Justice Butcher. Justice Butcher also ordered that Financial Markets Test Case Scheme will apply and that the second Case Management Conference and final hearing will be live-streamed. The FCA also published guidance setting out its expectations for insurers and brokers when handling claims and complaints for business interruption policies during the test case. It requires firms to identify the potential implications of the test case on their decisions regarding claims and complaints and treat policyholders fairly during the test case and when it is resolved.