(Adds FCA comments, details, background)
By Kirstin Ridley and Carolyn Cohn
LONDON, Sept 30 (Reuters) - Britain's markets regulator said
on Wednesday it had failed to strike a deal with major insurers
over prompt payouts to small businesses battered by the
coronavirus pandemic, dashing 11th-hour hopes that a Supreme
Court appeal could be avoided.
The Financial Conduct Authority (FCA) had set a late
Wednesday deadline for talks with insurers, such as QBE
and RSA, to ensure eligible business interruption (BI)
claims would be paid speedily, after the High Court ruled that
thousands had been wrongly rejected.
The regulator said it had hoped to reach an agreement with
the insurers on the interpretation of some important elements of
the judgment affecting "which businesses get paid and how much",
but conceded that the case was complex.
"We will continue discussions with insurers and action
groups, to find a solution which resolves the outstanding issues
as soon as possible to enable pay-outs on eligible claims," it
said in a statement.
Businesses, from cafes and wedding planners to events
companies and nightclubs, have said they face ruin after
attempts to claim for business losses during the pandemic -
which prompted a three-month national lockdown in March and a
series of stringent restrictions since - were rejected by
insurers.
Insurers disputed that many policies provided cover for the
pandemic, saying this would otherwise be catastrophic for the
industry.
(Reporting by Kirstin Ridley and Huw Jones; editing by Carolyn
Cohn and Kirsten Donovan)