Fitch Says Virus Suits Could Affect Insurers' Credit Quality
By Martin Croucher (May 27, 2020, 5:39 PM BST) -- Decisions by British courts over pandemic-related business interruption insurance disputes could weigh on the credit quality of insurers, Fitch Ratings has warned.
The ratings agency said Tuesday that business interruption and event cancellation losses could affect underwriting results for the rest of the year and might not peak until 2021 where litigation is involved.
The Financial Conduct Authority will take a sample of representative business interruption policy wordings to court in July in order to get a ruling over liability that would be legally binding on insurers.
Fitch said the "main stress" on companies was the extent to which they were...
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