The FCA’s final report emerged yesterday (22 September) and focuses on remedies for customer detriment arising from certain of the GI pricing practices it has been investigating in depth since it raised the topic in its 2017/18 Business Plan. The remedies proposed by the FCA include requirements for greater transparency for customers and improved reporting to the regulator. However, the most eye-catching remedy proposed is a ban on “price walking” (charging higher premiums for loyal customers), which the FCA CEO described as “radical” in the media coverage of the report.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.