As part of its investigation into Coronavirus (COVID-19) related business interruption insurance, the Financial Conduct Authority (FCA) have published draft guidance on expectations for insurers and insurance intermediaries when handling claims and complaints for business interruption policies during the test case.
The guidance highlights the steps firms should be taking to:
- identify the potential implications of the test case on decisions to reject claims
- keep policyholders informed about the test case and its implications for policies, claims and any settlement offers
- treat policyholders fairly when the test case is resolved
In addition, the FCA have provided an update on where they are in terms of their legal case – they have reviewed over 500 relevant policies from 40 insurers and identified a sample of 17 policy wordings that capture the majority of the key issues that could be in dispute – and set out a timetable for the court case which is scheduled for the second half of July.