Since July 2022 when the FCA published its rules and guidance to implement the Consumer Duty, much ink has been spilled on what it will mean for affected firms. Now, with the clock ticking down to implementation on 31 July 2023, the FCA has published the findings of its review of a number of larger … Continue Reading
Last month, the Financial Conduct Authority (“FCA”) published updated guidance regarding COVID-19 business interruption settlements and deductions made for Government support. The FCA first commented on this issue in August 2020, following reports that some insurers were making deductions for Government support received by policyholders, when calculating payments for business interruption insurance claims. The FCA’s … Continue Reading
The Financial Conduct Authority (the “FCA”) has published a ‘Dear CEO’ letter to insurers following the recent decision made in the Supreme Court test case on non-physical damage business interruption (“BI”) insurance. The FCA is determined to make the next steps on the recent ruling as clear as possible.… Continue Reading
The Financial Conduct Authority’s (“FCA“) test case on non-physical damage business interruption (“BI”) insurance has been the focal point for policyholders suffering from BI financial losses as a result of Covid-19.… Continue Reading
At the end of last week, the FCA announced that it had commenced a consultation exercise on a piece of draft guidance it has prepared to assist policyholders, insurers and insurance intermediaries to prove the presence or otherwise of COVID-19 in a particular area, which is a requirement of some Business Interruption (BI) policies.… Continue Reading
In the recent decision of Baines v Dixon Coles and Gill (A Firm) and others [2020] EWHC 2809, the High Court held that claims against a firm of solicitors regarding the theft of client funds by a former partner, could not be aggregated by the professional indemnity (PI) insurer.… Continue Reading
The FCA has just released a statement reminding insurance firms of the guidance that it published back in June, which set out its expectations for insurers and insurance intermediaries to consider the value of their products in light of the exceptional circumstances arising from the pandemic.… Continue Reading
Last night the FCA announced that the Supreme Court had granted permission to appeal the High Court’s judgment in the business interruption (“BI”) insurance test case to all those who had applied for that permission.… Continue Reading
In another ruling on the issue of post-Lockdown claims under business interruption (BI) insurance policies, the High Court last week summarily dismissed an action brought by a London crêperie, holding that its reliance on its policy with Allianz Insurance plc (Allianz) could only be triggered by physical loss of property as opposed to merely temporary … Continue Reading
The latest instalment of the Financial Conduct Authority’s (“FCA“) test case on business interruption (BI) insurance took place last Friday, with a “consequentials” hearing that dealt with the effect of the judgment, ‘leapfrog’ certificates and an application from a proposed new party.… Continue Reading
HM Treasury has responded to a letter from The Association of British Insurers (ABI), confirming the Government’s firm expectation that “grant funds intended to provide emergency support to businesses at this time of crisis are not to be deducted from business interruption insurance claims.” The ABI’s Letter Huw Edwards, Director General of the ABI, wrote … Continue Reading
We know that the regulator has long been concerned about different (and lower) premiums been offered to new customers compared to loyal customers who may not shop around for their insurances (the so called “loyalty penalty”). The FCA says that its work in the area has identified 6 million policyholders paying high or very high … Continue Reading
The High Court ruled yesterday in favour of the Financial Conduct Authority (“FCA“) on what the FCA describes as the “majority of the key issues” in its test case on insurance cover for business interruption (“BI“) losses incurred during the COVID-19 pandemic and subsequent Government imposed lockdown. The decision means that insurers may now have … Continue Reading
In a “Dear CEO” letter published on 4 September 2020, the Financial Conduct Authority (FCA) has set out its supervisory strategy for insurance intermediaries in personal and commercial lines, warning of “significant risks of potential harm” within the insurance sector.… Continue Reading
Earlier this month, the International Underwriting Association (“IUA“), the body representing underwriters in London that are separate from Lloyd’s, penned an open letter calling on the legal industry to allow insurers to cancel professional indemnity policies when lawyers fail to pay their premiums in the wake of the COVID-19 pandemic.… Continue Reading
Earlier this week, the FCA warned that it would get tough on against insurers that it finds are acting unfairly in paying COVID-19 related insurance claims. This was in response to complaints from small business groups that insurers are deducting the costs of Government grants from insurance pay-outs.… Continue Reading
The FCA has been reviewing temporary measures that came into force in the insurance and premium finance markets on 18 May 2020 because of the COVID-19 pandemic. In a statement released last week, the FCA announced its proposal to extend the series of temporary measures designed to help those policyholders, “who may be in temporary … Continue Reading
Following its intervention in the trade credit insurance market back in May, the UK Culture Secretary Oliver Dowden has just announced the launch of a Government-backed scheme worth £500 million pounds for domestic film and TV productions that are struggling to get COVID-19 related insurance. The inability of producers to access such insurance through the … Continue Reading
Yesterday saw the start of the FCA’s high profile test Court case against insurers on behalf of those businesses who have suffered non-damage business interruption losses caused by the COVID -19 pandemic.… Continue Reading
The FCA has just provided a further update on the progress of its High Court test case concerning business interruption (“BI”) insurance.… Continue Reading
There have been further developments in the FCA’s test case concerning business interruption (“BI”) insurance. Details have just been published on the FCA’s website.… Continue Reading
The Court of Justice of the EU (ECJ) recently considered the issue of an insured person’s right to choose their own lawyer under a legal expenses insurance policy, in the case of Orde van Vlaamse Balies and Ordre des barreaux francophones et germanophone v Ministerraad (Case C-667/18).… Continue Reading
The first Case Management Conference (“CMC”) in the FCA’s test case on business interruption (“BI”) insurance coverage took place earlier this week before Judge Christopher Butcher.… Continue Reading
Last month we reported on the FCA’s plans for the future progress of its Financial Markets Test Case, a case that is intended to try and help resolve some of the legal uncertainties around business interruption (“BI”) insurance policy coverage and how various BI policies respond to COVID-19 related claims by insureds. Earlier this week, the … Continue Reading
