Earlier this week, the FCA updated its webpage in respect of the business interruption insurance test case. This follows the decision of the Supreme Court, which was handed down last month. More on the decision can be found here.
The parties have now written to the Supreme Court setting out their proposed declarations (with supporting submissions). These declarations will declare whether the policies in the representative sample potentially cover business interruption losses arising from the COVID-19 pandemic.
The FCA anticipates that the Supreme Court will issue the declarations without a future hearing. However, it is not yet known when this will be.
Notwithstanding that, the FCA believes that the judgment from the Supreme Court gives insurers the clarity they need to conclude their claims processes with the large majority of their business interruption customers, without waiting for the declarations. It will be interesting to see if this happens in practice and we welcome your thoughts and experiences in this regard too.
The FCA and the other parties to the test case have made written submissions to the Supreme Court on the form of the declarations to be issued by the Court.