The FCA has selected 17 policy wordings for its test case to be brought to the High Court in July. The regulator believes the representative samples picked will give the best chance of providing clarity to the market on the wide range of disputed business interruption policies held in the UK. Given the nature of the case, the FCA said the list is not exhaustive and urged all insurers to check their policy wordings against those it intends to test, to see if theirs will be impacted by the outcome of the case. After collecting this information, it said it intends to publish a list of all the relevant insurers and policies that may have impacted wordings in early July.
British insurer RSA has said it doesn’t expect to alter its Q1 estimate of losses incurred due to claims related to Covid-19, despite being a part of the FCA test case for business interruption insurance disputes. The insurer said in its first-quarter trading update this year it expects to take losses of £25m net of reinsurance, stretching across policies for travel, wedding cancellation and commercial lines business interruption. In a statement today, it addressed its inclusion in the FCA test case in relation to its estimated losses. “Market share has not been a determining factor in selection, and RSA’s inclusion is not representative of its market share on the relevant policy wordings,” it said.