FSCA slams insurers over business interruption stance

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The Financial Sector Conduct Authority says insurers avoiding paying business interruption claims where no grounds exist to do so are acting contrary to the Treating Customers Fairly regulatory regime

In a statement issued today, the Financial Sector Conduct Authority says insurers avoiding paying business interruption claims where no grounds exist to do so are acting contrary to the Treating Customers Fairly regulatory regime, that it is engaging with insurers on the issue, and that it may issue directives to insurers that are "non-compliant".

The FSCA says it has communicated this view to insurers and will take action against those that do not treat their customers fairly.

Based on the information received and analysed by the FSCA to date, the regulator says it found that, although it could not find evidence that the national lockdown could be a trigger for a valid business interruption insurance cover claim, policyholders are able to claim in instances where they can show that they have satisfied the requirements of their specific policy, whether it was before, during or after the lockdown.

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