(Reuters) – The UK market regulator said on Wednesday that it had failed to reach an agreement with major insurers on quick payments to small businesses affected by the coronavirus pandemic, making hope that a Supreme Court appeal can be easily avoided.
The Financial Conduct Authority set a deadline on Wednesday for talks with insurers, such as QBE and RSA, to ensure that legitimate business interruption claims were paid quickly, after the High Court ruled earlier this month that thousands were wrongly rejected.
The regulator said they had hoped to reach an agreement with insurers on the interpretation of some important parts of the ruling affecting "which companies get paid and how much", but admitted that the case was complex.
"We will continue discussions with insurers and action groups to find a solution that resolves the outstanding issues as soon as possible to enable payments on eligible claims," it said in a statement.
Busin esses, from cafes to wedding planners and nightclubs, has said they face ruin after attempts to claim business losses during the pandemic, which led to a three-month national shutdown in March and a series of severe restrictions since, were rejected by insurance companies. [1
The FCA and seven insurers have already applied for an expedited appeal in a precautionary measure to help resolve the issue, which could affect 370,000 policyholders and billions of pounds in insurance claims. 19659002] FCA brought the action against QBE Insurance Group Ltd., Hiscox Ltd., RSA Insurance Group PLC, MS Amlin PLC, Ecclesiastical Insurance Group PLC, Argenta Holdings Ltd., Zurich Insurance Group Ltd. and Arch Insurance Group Inc. in June to clarify whether 21 corporate interruption formulations covered government-imposed closures and disruptions to limit the spread of the virus.
Most insurers did not immediately respond to comments for comment. Arch and Argenta declined to comment.
The FCA, which has been hailed for bringing the case on behalf of struggling companies, has said it could affect more than 60 insurance companies and 700 insurances as many have similar wording.
The judges reviewed policies covering losses when insured premises cannot be reached due to public authority constraints, in the event of a notifiable disease and hybrid formulations. pave the way for an appeal to the Supreme Court.
More insurance and risk management news about the coronavirus crisis here .