"FCA said it would work with insurers to make sure they ‘move quickly’ to pay claims of more than £1bn
Hundreds of thousands of small businesses that were forced to close during the Covid-19 pandemic are expected to receive payouts on insurance claims worth more than £1bn after what was described as a “historic victory” at the supreme court.
The Financial Conduct Authority, which brought the test case, said it would now be working with insurers to ensure they “move quickly” to pay claims to businesses, some of which have been struggling to stay afloat.
Judges threw out the appeals from six insurance companies and largely supported the arguments made by the FCA and a policyholder action group – prompting the law firm Reed Smith to declare that this was “a catastrophic outcome” for insurers.
The FCA has previously said that 370,000 policyholders may be affected by the outcome of the test case, and originally estimated the value of claims affected at about £1.2bn. However, some analysts have said several billion pounds could be at stake."
Small businesses win Covid insurance payouts after UK supreme court victory | Insurance industry | The Guardian
Only a billion quid?
That's like what, just over 2 grand per policyholder
And wait for another Supreme Court decision that will reduce payouts by the amount of Govt support that was provided to same businesses.
Best part - renewal prices for insurance will go up massively, far in excess of payments whilst ToS will be changed to reduce chance of claim (ie: "pre-existing known situation").
Hundreds of thousands of small businesses that were forced to close during the Covid-19 pandemic are expected to receive payouts on insurance claims worth more than £1bn after what was described as a “historic victory” at the supreme court.
The Financial Conduct Authority, which brought the test case, said it would now be working with insurers to ensure they “move quickly” to pay claims to businesses, some of which have been struggling to stay afloat.
Judges threw out the appeals from six insurance companies and largely supported the arguments made by the FCA and a policyholder action group – prompting the law firm Reed Smith to declare that this was “a catastrophic outcome” for insurers.
The FCA has previously said that 370,000 policyholders may be affected by the outcome of the test case, and originally estimated the value of claims affected at about £1.2bn. However, some analysts have said several billion pounds could be at stake."
Small businesses win Covid insurance payouts after UK supreme court victory | Insurance industry | The Guardian
Only a billion quid?
That's like what, just over 2 grand per policyholder
And wait for another Supreme Court decision that will reduce payouts by the amount of Govt support that was provided to same businesses.
Best part - renewal prices for insurance will go up massively, far in excess of payments whilst ToS will be changed to reduce chance of claim (ie: "pre-existing known situation").
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