A five-judge panel at the Supreme Court has begun considering its decision in a dispute between UK insurers and the Financial Conduct Authority over business interruption insurance during the Covid pandemic.
The case has been running all week with the judges hearing submissions from lawyers representing the FCA and the insurance industry over how the wording of various business interruption policies should be interpreted.
The dispute is time-sensitive as it involves around 370,000 policyholders who, because of complicated wording, are unsure whether they are entitled to make a claim for business interruption owing to Covid 19. It has been fast-tracked from the High Court, which gave its judgment in September.
It’s also “probably the most important insurance decision of the last decade”, according to the FCA.
The hearing ended late yesterday. At the end of the hearing, Supreme Court judge Lord Reed said the court recognised the importance of a swift judgment.
He said the judges would provide their ruling as quickly as possible, but he said he didn’t know whether they would rule before Christmas or in January.
The judges hearing the case are Lord Hodge, Lord Reed, Lord Briggs and Lord Hamblen.
The insurers appealing are Arch Insurance (UK), Argenta Syndicate Management, MS Amlin Underwriting, Hiscox, QBE UK, Royal & Sun Alliance and Zurich.
Hiscox Action Group, which represents Hiscox customers, is also taking part in the appeal.
