Law360 is providing free access to its coronavirus coverage to make sure all members of the legal community have accurate information in this time of uncertainty and change. Use the form below to sign up for any of our weekly newsletters. Signing up for any of our section newsletters will opt you in to the weekly Coronavirus briefing.
Sign up for our Commercial Litigation UK newsletter
You must correct or enter the following before you can sign up:
Thank You!
Law360, London (September 29, 2020, 8:57 AM BST) -- The Financial Conduct Authority said on Tuesday that it has filed to appeal directly to the Supreme Court against a High Court decision on business interruption insurance if it cannot settle outstanding questions with insurers about claims linked to COVID-19.
The FCA said it filed the appeal application as a precaution in case it fails to reach agreement with the insurers that acted as defendants in the case. (AP Photo/Eric Gay)
The FCA said it filed the appeal application as a precaution in case it fails to reach an agreement with the eight insurers that acted as defendants in the case over payments on claims by Wednesday. The regulator said that seven of the insurers had filed similar precautionary appeals.
The test case was heard to determine whether as many as 370,000 companies forced to close during the first COVID-19 pandemic lockdown in March will be able to claim on their business interruption policies. The ruling went largely in favor of policyholders, meaning that several insurers will have to pay out if they do not appeal.
The regulator told insurers on Sept. 21 to settle claims quickly if they did not intend to appeal the judgment. Policyholders represented by the Hiscox Action Group said on Thursday that more businesses would go under if the City regulator did not push insurers to pay out speedily.
"The FCA therefore continues to work closely and at speed with the eight insurers and two intervenors that participated in the test case to reach an agreement in principle on a range of issues whereby an appeal process would not be required, and payments would be made on eligible claims as soon as possible," the FCA said on Tuesday.
"Positive discussions continue with all parties," the watchdog added.
Monday was the deadline to appeal the judgment. A spokesperson for Hiscox said it and other insurers had filed for appeal to allow them to avoid missing the "statutory deadline."
"Hiscox has not yet made a decision on whether it will seek to appeal," the insurer added.
A spokesperson for the Association of British Insurers said the insurers involved have "engaged in constructive talks with the FCA to see if there is a mutually agreed way to avoid appeals. These talks are continuing."
--Editing by Ed Harris.
Update: This story has been updated to add comment from the ABI.
For a reprint of this article, please contact reprints@law360.com.
