An undisclosed number of insurance companies have said they would pay out on business interruption insurance relating to fallout from the Covid-19 pandemic, The Guardian has reported.
The u-turn came after the Financial Conduct Authority (FCA) approached 56 insurance companies and reviewed policies from 40 of them.
The FCA has undertaken court action for business interruption insurance policies. The insurers whose policies use wording included in the FCA’s test case include Allianz Insurance plc, Aviva Insurance Limited, Hiscox Insurance Company Limited and Zurich Insurance plc.
In mid-May, Property Week reported on action groups, many of which are made up of occupiers across the hospitality and leisure industries, seeking to bring group claims against insurers.
Christopher Woolard, interim chief executive at the FCA, said: “The court action we are taking is aimed at providing clarity and certainty for everyone involved in these disputes, policyholder and insurer alike.”
Hiscox said it “welcomes today’s announcement from the Financial Conduct Authority in the UK regarding the proposed legal test case in relation to business interruption wording in UK property insurance policies.”
A spokesperson from Zurich added: “To date the Group has received limited claims in relation to the policies to be tested by the FCA and based on received legal opinion remains confident in its interpretation of UK policy wordings.”