The Supreme Court delivered its keenly-anticipated judgment in the FCA’s Test Case on non-damage business interruption (BI) cover for losses arising from the COVID-19 pandemic on 15 January 2021. The judgment is the culmination of expedited proceedings brought by the FCA to clarify cover under a range of sample BI wordings that the Court was asked to consider. While the judgment and (where issues were not appealed) the High Court’s judgment of 15 September 2020 are binding on the Insurers who voluntarily agreed to be parties to the test case litigation, the FCA has made clear its expectation that the Courts’ rulings will be “persuasive guidance” in the interpretation of similar wordings and claims.
In a continuation of our video series, we explore the impact on brokers, BI insurers, reinsurance recoveries, reinsurance claims, and regulatory impact.
The FCA Test Case Supreme Court Judgment
The much-awaited judgment in the FCA’s High Court test case in relation to non-damage business interruption (BI) insurance policies and their response to the COVID-19 pandemic was recently published.
In our short six part video series, we explore the immediate impact on brokers, BI insurers, reinsurance recoveries, reinsurance claims, regulatory considerations and trends clauses.
The 162 page decision is indicative of the degree of complexity that the Judges found in analysing the BI wordings they were asked to consider – complexity which itself may be seen by many – including the FCA – as a systemic issue for the market.
The FCA Test Case: Video Series
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