The ABI has said it will take time for insurers to consider and possibly appeal the ruling in the FCA test case concerning COVID-19 business interruption losses.

Huw Evans, director general of the ABI, said: “This is a complex judgment spanning 162 pages and 19 policy wordings and it will take a little time for those involved in the court case to understand what it means and consider any appeals. Individual insurers will be analysing the judgment, engaging with the regulator, taking account of the appeal process and keeping their customers informed in the period ahead.”

Clive Zietman, head of commercial litigation at legal firm Stewarts, said: “The insurers will not be happy at what happened today and will doubtless be looking to take this matter to the Supreme Court. The case will give rise to litigation on specific policies and no doubt insurers may, in individual cases, rely on other defences such as failure to make full disclosure at the time the policy was taken out or failure to notify in good time. Other cases may well settle but this judgment is not a panacea for thousands of prospective disputes.”

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