We interviewed GraniteShares' CEO Will Rhind from New York, soon after they launched a suite of ETP's which allow you to invest in three different baskets of giant US tech stocks. Watch the full video here.

Less Ads, More Data, More Tools Register for FREE

UPDATE 2-UK regulator, insurers, brace for Supreme Court battle over COVID-19 case

Wed, 30th Sep 2020 17:44

(Adds details)

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 hopes that a Supreme Court appeal
could be easily avoided.

The Financial Conduct Authority (FCA) set a 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 earlier this
month 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 to wedding planners 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.

The FCA and seven insurers have already applied for an
expedited appeal in a precautionary measure to help resolve the
case, that could affect 370,000 policyholders and billions of
pounds in insurance claims.

The FCA brought the case against QBE, Hiscox, RSA,
MS Amlin, Ecclesiastical, Argenta
, Zurich and Arch in June to clarify
whether 21 BI policy wordings covered government-ordered
closures and disruption to curb the spread of the virus.

Most insurers did not immediately respond to questions for
comment. Arch and Argenta declined to comment.

The FCA, which has been applauded for bringing the case on
behalf of struggling businesses, has said it could affect more
than 60 insurers and 700 policies because many have similar
wordings.

The judges examined policies that cover losses when insured
premises cannot be accessed because of public authority
restrictions, in the event of a notifiable disease and hybrid
wordings.

A London court hearing on Oct 2 is designed to clarify how
the judgment should be interpreted and pave the way for an
appeal to the Supreme Court.

(Additional reporting by Huw Jones; Editing by Kirsten Donovan)

Related Shares

More News

Hiscox eyes return to dividend list; counts cost of US deep freeze

Hiscox eyes return to dividend list; counts cost of US deep freeze

5 May 21 14:24

Hiscox Q1 premiums rise, hails strong start to year

(Sharecast News) - Specialist insurer Hiscox reported a rise in first-quarter gross written premiums on Wednesday, as growth in its London market, Europe and direct and partnerships business offset planned reductions in the US broker channel.

5 May 21 07:31

UK earnings, trading statements calendar - next 7 days

UK earnings, trading statements calendar - next 7 days

28 Apr 21 16:09

BROKER RATINGS: Legal & General, Informa upgraded while Bunzl gets cut

BROKER RATINGS: Legal & General, Informa upgraded while Bunzl gets cut

27 Apr 21 09:40

Login to your account

Don't have an account? Click here to register.

Quickpicks are a member only feature

Login to your account

Don't have an account? Click here to register.