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| less than a minute read

FCA judgment brings some clarity to policy holders

Whether or not the FCA test case judgement is a victory for policy holders depends on who you ask…

Whilst the FCA have pointed out that court has ruled in favour of policy holders for the majority of the 21 sample clauses that were the subject of the case, the insurers appear to be relieved that the numbers of policies that will result in claims falls well below their worst case scenario - and their shareholders appear to agree.

However, the impact of the pandemic is likely to be felt for some time across society and business. This will continue to be cause considerable concern among business leaders from all corners of the economy about the longer-term commercial implications.

What is very clear is that policy holders and insurers alike have much to do to get to grips with the detail in the judgement as quickly as they can...

Small firms fighting for insurance pay-outs due to the coronavirus lockdown have welcomed a court judgment which should help some advance their claims - but may see others lose out. The decision on a closely-watched test case brought by the Financial Conduct Authority (FCA), the City watchdog, is estimated to affect 370,000 businesses and £1.2bn worth of claims.


financial services, covid-19, insurance, regulators