29th Sep 2020 09:40
(Alliance News) - The UK Financial Conduct Authority said Tuesday it continues to have positive discussions with the eight insurers involved in its coronavirus business interruption test case.
The regulator noted it has filed a "leapfrog" application to appeal to the Supreme Court decision made in mid-September, but stressed it was merely a precautionary measure.
"The FCA's intention has, throughout the process, been to achieve clarity on affected BI policies at speed. We believe that clarity was provided in the initial judgment handed down on September 15," the watchdog said.
In mid-September the UK's financial services regulator noted the court ruled in favour of policyholders.
In a statement Tuesday, the regulator said: "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. Positive discussions continue with all parties."
"The FCA's 'leapfrog' application has been filed on a precautionary basis in the event that this agreement is not reached by close of business Wednesday. The FCA understands that seven insurer parties have made similar precautionary applications," the FCA added.
London-listed insurers Hiscox Ltd and RSA Insurance Group PLC, two of the eight firms that were defendants in the case, have previously said the ruling will result in a financial hit of around GBP100 million.
On Tuesday, the pair noted they have also filed an appeal with the Supreme Court.
"In order to preserve the ability of any appeal to proceed straight to the Supreme Court, Hiscox, together with certain other Insurers and the FCA, has taken the necessary procedural step of applying to the High Court for a leapfrog certificate before yesterday's statutory deadline for doing so had passed. However, Hiscox has not yet made a decision on whether it will seek to appeal," Hiscox explained.
At the Supreme Court's next hearing, on October 2, the court will decide the appropriate declarations to be made to give effect to the judgment it handed down on September 15.
"Hiscox remains committed to an expedited resolution and today's application, pending this hearing, preserves speed of process for all parties should there be an appeal," Hiscox said.
Shares in Hiscox were down 2.1% in London on Tuesday morning at 886.20 pence each. RSA Insurance was down 1.0% at 454.70p.
By Paul McGowan; [email protected]
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