MS Amlin Underwriting, the Lloyd’s re/insurer, will be one of eight participating re/insurers in the UK Financial Conduct Authority’s (FCA) test case court action aimed at providing legal clarity on business interruption (BI) insurance.
The UK operations of a number of Bermuda-based re/insurers are involved in the test case, including Arch, Aspen, Hiscox and QBE.
The FCA said it has identified a sample of 17 BI policy wordings that it believes capture the majority of the key issues that could be in dispute. It expects to publish a list of all the relevant insurers and policies that may have impacted wordings in early July.
Christopher Woolard, interim chief executive at the FCA, said: “The court action we are taking is aimed at providing clarity and certainty for everyone involved in these BI disputes, policyholder and insurer alike. We feel it is also the quickest route to this clarity and by covering multiple policies and insurers, it will also be of most use across the market.”
In a statement MS Amlin said it takes its responsibility to support its policyholders extremely seriously and understands the unprecedented challenges businesses face as a result of COVID-19.
“We support the FCA’s move to collaborate with the industry and progress with the test case to lift the deadlock and uncertainty surrounding the payment of BI claims under these unique circumstances,” MS Amlin said.
MS Amlin, Financial Conduct Authority, Hiscox, Arch, Aspen, QBE, COVID-19