CII reacts to FCA action on business interruption insurance
In response to the FCA announcing this morning it is intending to seek legal clarity on business interruption (BI) insurance to resolve doubt for businesses who are facing uncertainty on their claims, Matt Connell, director of policy and public affairs for the Chartered Insurance Institute, said: “The FCA’s decision to test the wording of certain business interruption contracts in court is preferable to a disorderly and potentially lengthy series of test cases that are less likely to reach a comprehensive and definitive solution.
“As a result, we welcome this move to reduce uncertainly for both insurers and the public. The process which the FCA will use to select test cases will be very important, and we anticipate that the FCA will consult widely with both consumer groups and the insurance sector to maximise the chances of reaching a decision that is fair, comprehensive and definitive.”
