The definition of insurance business

The Financial Services and Markets Act 2000 requires persons carrying on insurance business in the UK to be authorised to do so by the Financial Services Authority. General (non-life) business is divided into 18 classes, as set out in the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 SI 2001/3544, and authorisation is required if the business falls into any of the relevant classes. The question in Digital Satellite Warranty Cover Ltd v Financial Services Authority [2011] EWCA Civ 1413 was whether the applicant company was carrying on insurance business of one or more of the specified classes without authorisation. At first instance Warren J ruled that this was the case and that it was appropriate to grant a winding up order to the FSA on that basis. This was an appeal against that decision.

Digital Satellite Warranty: the facts

DSW offered extended warranties to consumers in relation to satellite television equipment, including dishes, digital boxes and cabling. Customers were obtained by telephone calls and mailshots addressed to people whose manufacturers’ warranties were due to expire. DSW had nothing to do with Sky itself, but the impression was on occasion given that there was some sort of official connection. The contracts issued by DSW varied in form, but in most cases provided both breakdown and accidental damage cover.