Following the result of the FCA Business Interruption test case, with the High Court ruling in favour of some policyholders, insurers are now working through the impacts. Let’s not forget, this is no simple judgement, the level of complexity spans across 162 pages and 19 policy wordings. Insurers will be analysing the judgement, engaging with the FCA, taking account of the appeal process, and - most importantly – keep their customers informed as they navigate through what this means for them in the months ahead.
Inevitably alongside this activity, many insurers will be looking to make changes to their product suite, and we encourage all insurers to remember the lessons learned during Covid and ensure that robust Product Oversight and Governance frameworks are in place to deliver this activity. New policies and policy wordings should not be a reactive process, but appropriately consider the needs of the target market and product value in particular when looking at small and micro enterprises.