Context
The FCA has launched a consultation, which closes on 18th January 2021, with relation to draft guidance developed to assist parties in proving the presence of Coronavirus (COVID-19) in BI insurance claims. The draft guidance explains the types of evidence and methods which policyholders can use to prove the presence of Coronavirus in a particular area around their premises.
The guidance aims to provide clarity and assist in making the process of proof as simple as possible for policyholders, which in turn should enable them to receive claim payments as early as possible, should the Supreme Court uphold the High Court’s decision that relevant policies potentially provide cover in response to the pandemic.
Key points to note
- The consultation contains, within Chapter 3, draft guidance for insurers and insurance intermediaries, on firms’ obligations under:
- the FCA Principles for Businesses (PRIN), in particular Principles 6 and 7
- the Insurance Conduct of Business sourcebook (ICOBS), in particular ICOBS 2.2.2R, ICOBS 2.5.-1R and ICOBS 8.1
- Insurance intermediaries assisting policyholders with making claims should have regard to the guidance provided to policyholders in this draft guidance and are encouraged to adopt approaches that streamline and expedite claims handling for their clients. For example, insurance intermediaries may wish to publish on their websites records of the Relevant Policy Areas (RPAs) in which cases of Covid-19 have been proved by their clients, to assist their other clients when making claims (and subject to complying with any applicable laws regarding the publication of this data).
- Insurance intermediaries helping insurers assess claims should have regard to the draft guidance in the same way as insurers and this is outlined in Chapter 3.
Next actions
Firms can email their response to the consultation by email to: biinsurancetestcase@fca.org.uk