(Adds FCA comments)
LONDON, May 12 (Reuters) - Insurers have paid out more than
700 million pounds ($988.89 million) so far in business
interruption payments following a court ruling earlier this
year, Britain's markets watchdog said on Wednesday.
Insurers have made interim payments of 268 million pounds
and final settlements totaling 433 million pounds, the Financial
Conduct Authority said.
The watchdog brought the closely watched test case on behalf
of policyholders last June, saying it could affect 370,000
policyholders and 60 insurers, and it is now checking that
payouts are going ahead quickly.
"Where we see any laggards we are taking supervisory
action," FCA CEO Nikhil Rathi told a hearing in parliament.
However, some businesses needed time to supply the required
evidence of a loss.
Defining what is a loss is also a "grey area" in the court
ruling and the FCA is in discussion with the finance ministry on
what further guidance could be given, Rathi said.
Some businesses have accepted money from the government to
furlough staff during COVID lockdowns, raising the question of
whether companies should get money from the government and
insurers, Rathi said.
"That is something that will depend on precise wording of
each policy and the Supreme Court did not give us the Holy Grail
of a complete answer on that question," Rathi said.
(Reporting by Carolyn Cohn and Huw Jones, editing by Bernadette
Baum)