Marine insurance and the FCA test case: the impact of the modified and refined test of causation on marine insurance, in particular, marine cargo insurance

The Supreme Court’s judgment in The Financial Conduct Authority v Arch Insurance (UK) Ltd [2021] UKSC 1; [2021] Lloyd’s Rep IR 63 (the “FCA test case”) restates the law of causation, introducing refinements to the conventional rules of causation appropriate to the special circumstances of the Covid-19 pandemic. The issue considered in this article is whether these refinements clarify, or further complicate, an already complex area of the law.

Introduction