The Financial Conduct Authority (FCA) has published finalised guidance aimed at helping firms prove the presence of Coronavirus (Covid-19) in a particular area, based on the High Court’s judgment and declarations in its business interruption (BI) test case. The finalised guidance comes into effect on 3 March 2021 and will cease to have effect on 31 January 2022, by which time the FCA expects that all issues relating to proving the presence of Covid-19 will have been resolved.
Feedback Statement FS21/5 summarises the feedback received about the draft guidance that the FCA issued for consultation on 11 December 2020, before the Supreme Court had handed down its judgment in the case. The draft guidance set out the types of evidence and methodologies which policyholders may use, together with links to further useful information for policyholders. It also set out the FCA’s expectations for insurers and insurance intermediaries in relation to policyholders seeking to prove the presence of Covid-19 when making claims under BI policies. In total, the FCA received feedback about the draft guidance from 73 respondents, 66 of which were kept confidential.
The FCA used FS21/5 to introduce its Covid-19 calculator to assist insurers, insurance intermediaries and policyholders to identify whether there was at least one case of Covid-19 in the relevant policy area at any given date. Firms that would like to use this calculator, should sign up for the FCA’s BI test case email alerts and they should receive an email when the calculator is launched.
The FCA’s webpage dedicated to the BI test case can be accessed by clicking here.
BIBA members’ compliance and regulation queries should be directed to: [email protected].