FCA issues latest update on Business Interruption insurance test case

The Financial Conduct Authority (“FCA”) yesterday published an update on the progress of its High Court test case concerning Business Interruption (“BI”) insurance policies.

The FCA confirmed that proceedings have now been commenced in the High Court with relevant court documents, including the claim form and particulars of claim, available through the FCA’s dedicated BI insurance webpage.

The questions for determination by the Court, assumed facts and issues matrix are also available to view online, alongside an amended list of affected insurers and BI policy wordings. The FCA anticipates that a comprehensive list of relevant insurers and policy wordings that may be affected by the test case will be published in July 2020.

Documents that relate to the FCA’s application have also been published online including the FCA’s application notice, draft order and supporting witness statement.

Since 1 June 2020, the FCA has engaged with a range of stakeholders regarding the test case, gathering comments to assist in the production of its particulars of claim and other court documents. A summary of the steps that the FCA has taken to engage with stakeholders is provided in the FCA’s latest update.

On 16 June 2020, the first case management conference in the test case is expected to take place. The FCA has indicated that it intends to request that this hearing is livestreamed. At the case management conference, the Judge will be asked to consider the FCA’s application for an expedited hearing, to fix the timetable for the case and to deal with other procedural matters.

Insurer parties in the test case are due to file their Defences by 23 June 2020. In anticipation of the final court hearing, the FCA expects to issue a further invitation to stakeholders to provide comments shortly after this date, allowing for any further comments from stakeholders to be incorporated into the FCA’s Reply and skeleton arguments.

Beale & Co are currently advising several insurers on Covid-19 Business Interruption related recovery issues. Should you require any advice, please do get in touch.

The FCA’s latest update is available in full, here.