Mel Stride comments on FCA seeking court ruling on business interruption insurance

The Finance Conduct Authority (FCA) has announced this morning that it ‘intends to seek legal clarity on business interruption insurance to resolve doubt for businesses who are facing uncertainty on their claims.’

Commenting on the announcement, Rt Hon. Mel Stride MP, Chair of the Treasury Committee, said:

“The uncertainty surrounding these insurance claims has been life-sapping for many businesses and there is a risk here of damage to the insurance sector’s reputation.

"With some businesses struggling day to day for survival, the Treasury Committee has called for clarity. 

"Today’s steps by the FCA to help remove uncertainty for all parties around business interruption insurance are therefore extremely welcome. 

“It will be critical though that the court process is expedited as rapidly as possible so that any resulting additional claim payments can be realised at the earliest opportunity. The Committee will be pressing for rapid progress.

“Those who should be paid, should be paid as soon as possible."

--Ends--

Notes to Editors

• Today’s announcement from the FCA is here.

• In evidence to the Treasury Committee on 21 April, UKHospitality said that 71 per cent of its members have had insurance claims rejected. The transcript is here. The relevant section is Q248.