Coronavirus Business Interruption Loan Scheme
The question
To ask the Chancellor of the Exchequer, if she will work with the Financial Conduct Authority to issue guidance to insurers on the resolution of Covid-19 Business Interruption claims not resolved when the limitation deadline is reached.
Answered by Lucy Rigby
The Financial Conduct Authority (FCA), as the independent regulator for financial services, sets the conduct standards required of insurance firms. This includes rules requiring insurers to handle claims fairly and promptly.
With respect to business interruption claims linked to Covid-19, the Supreme Court published its final judgment in the FCA test case in January 2021. At the time of the judgment, the FCA set out its expectation that insurers should communicate to all impacted policyholders what the judgment meant for their claim and that insurers should move quickly to resolve claims as determined by the judgment, making interim payments wherever possible. It is important to note that the FCA court case did not cover all potential issues with business interruption policies but aimed to provide certainty to as many policyholders as possible.
The FCA, as the independent regulator, has robust powers to take action where firms do not appear to be meeting their expectations and treating their customers fairly.
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