The ‘consequentials’ hearing in the business interruption test case took place on Friday 2 October. The FCA’s website will be updated in due course with the transcript of the proceedings and the final order required to give effect to the judgment given in mid-September. Pending that, the executive summary (as it were) is that the court agreed to grant leapfrog certificates to all parties and interveners to appeal directly to the Supreme Court.Continue reading
The Commercial Court gave judgment yesterday in the BI insurance test case initiated by the Financial Conduct Authority (FCA), whose CEO has said that they “are pleased that the Court has substantially found in favour of the arguments we presented on the majority of the key issues”.
The FCA’s aim in taking these proceedings was to secure clarity on behalf of policyholders about how non-damage business interruption insurance policies should respond following the Coronavirus outbreak and the associated operating restrictions. The sheer breadth of the case – eight insurers directly involved, 60 insurers affected, 700 wordings and 370,000 policyholders potentially in scope – suggested from its outset that a binary ‘cover’ or ‘no cover’ outcome looked highly unlikely.Continue reading
The second case management conference in the FCA business interruption insurance test case took place today. The court allowed groups of policyholders – the Hiscox Action Group and Hospitality Insurance Action Group – to intervene in the hearing and made other detailed orders about the management of the case during the three weeks before the trial begins on 20 July.