The FCA test case

The Financial Conduct Authority (FCA) has initiated a test case aimed at resolving contractual uncertainty around the validity of many business interruption claims in relation to Covid-19. The FCA is seeking a judgment from the High Court that will be legally binding on the insurers that are parties to the test case in respect of the interpretation of a representative sample of non-damage business insurance policy wordings.

Full details of the test case, and all the steps taken by the FCA in respect of the test case, are available on its website. The FCA has also published its finalised guidance that sets out the FCA’s expectations for insurers when handling claims and complaints relating to relevant non-damage business interruption policies during the test case.

Further information on Argenta Syndicate Management Limited’s (ASML) approach is set out in the FAQs below.

Timetable of proceedings

A summary of the important dates for the test case are set out below.

09 June 2020 The FCA initiated proceedings in the High Court
16 June 2020 The Court fixed the timetable for the case and other procedural matters at the first case management conference
23 June 2020 Insurers filed their Defences
26 June 2020 Second case management conference
03 July 2020 FCA files its Reply
20-23 July and
27-30 July 2020
Test case to be tried over 8 days at a court hearing before Lord Justice Flaux and Mr Justice Butcher


Keeping you informed

We will post details of key developments from the test case on this page. For customers impacted by the test case, we will contact you directly to provide updates on the test case and if there have been any changes to previous communications that we have sent.

You may wish to register for email updates from the FCA on the progress of the test case on its website.

The Financial Ombudsman Service has issued its own guidance on business interruption insurance and Covid-19, which is available on its website.