A comment from the International Underwriting Association on the Financial Conduct Authority test case for business interruption policies covering Covid-19 losses.

Dave Matcham, chief executive of the International Underwriting Association, said: “The impact of the Covid-19 crisis on the London company market has been widespread and profound. IUA members have supported their clients, making claims payments across a range of business classes, but most notably on contingency and business interruption policies.

“Where there have been coverage disputes, companies have cooperated fully with the FCA in its legal test case to bring about a resolution as speedily as possible. The court decision provides a degree of certainty for both sides.

“The economic losses brought about by Covid-19 are unprecedented and have raised important questions for risk managers. Insures are now working with clients and government to ensure that effective preparations are in place for any future pandemics.”