FCA AND INSURERS APPEAL BUSINESS INTERRUPTION TEST CASE

The Financial Conduct Authority (FCA) and seven insurers are appealing the recent business interruption (BI) test case judgement. On Tuesday the FCA confirmed it had filed a 'leapfrog' application to the Supreme Court. It also said that seven of the insurers that participated in the test case have made similar applications. However, the leapfrog applications have been on a “precautionary basis” as the various parties are in talks to avoid the need to appeal. The regulator, which brought the case on behalf of small businesses denied Covid-19 related BI claims by their insurers, said it continues to “work closely and at speed” with the eight insurers. They hope to reach an agreement in principle on a range of issues whereby an appeal process would not be required, and payments would be made on eligible claims as soon as possible. “Positive discussions continue with all parties,” it said.