(Reuters) – Hiscox has agreed to an arbitration settlement with a group of policyholders due to loss of business interruption due to the government's COVID-19 deadlock last year, Lloyd & # 39 ;s of the London insurer said on Monday.
Hiscox was one of six of the world's largest commercial insurers to lose a test case in the UK brought on behalf of decision makers by the Financial Conduct Authority.
The UK's Supreme Court ruled that policyholders were entitled to payments from insurers who had argued that many business interruption policies did not cover major disruptions following the government's efforts to curb the March 2020 virus.
Hiscox said in a statement that its settlement with Hiscox Action Group of policyholders was "In line with the Supreme Court ruling and the procedure has now been resolved to the mutual satisfaction of all parties."
Conditions of residence It was not confidential, it added.
Hiscox said in March that a total of $ 475 million had been set aside for pandemic-related allegations and that it had suffered "trademark damage" following the high-profile court case.
The ruling affects dozens of insurance companies with similar wording.
The FCA said earlier this month that € 757 million in interim or final payments had been made by policyholders to policyholders to date.