The association’s director general believes the resulting judgment ‘could impact insurance for the next decade’

The ABI’s director general Huw Evans has labelled the confirmed appeal process arising from the FCA’s test case judgment on the interpretation of business interruption (BI) policy wordings when applied to Covid-19-related claims as “unsurprising”, adding that the ruling “could impact insurance for the next decade”.

On 2 October, the High Court gave its permission for the appeal process for the FCA’s test case to ‘leapfrog’ straight to the Supreme Court - Reuters reported that the UK’s highest court is expected to consider the appeal by the end of the year.

Speaking to Insurance Times, Evans said: “We’ve got a 162-page ruling, 580 paragraphs of dense insurance contract law that could impact insurance for the next decade. I think it’s unsurprising that there are likely to be appeals from all parties and we said on the day of the judgment three weeks ago that it was a mixed judgment and we stand by that view.”

Fast tracked

Evans views the speed of the legal process as positive, adding that this will enable policyholders to gain clarity as fast as possible.

He continued: “It’s still really good that it’s a fast track process, that this will be done quickly and then the clarity that will be there will come from the highest court in the land.

“Whatever the actual outcome, it will provide certainty and clarity very quickly and I think that’s what all parties want, that’s why it’s still a process we support.

“We’re obviously not a direct party to it, but we still support the process, mainly because of the speed element, and I was therefore pleased that if the parties do want an appeal, the court gave its agreement in principle for them to be fast tracked.”