BoE

Business interruption insurance claims are a worry, BoE says before court rules

By Carolyn Cohn and Huw Jones

LONDON (Reuters) – The biggest uncertainty now facing insurers is whether they will have to pay for a raft of business interruption claims, the Bank of England said, as a court prepares to rule on whether existing policies cover big losses caused by the coronavirus crisis.

Anna Sweeney, the BoE’s executive director for insurance, said the sector has remained robust in the face of the COVID-19 pandemic’s impact on assets they hold and on liabilities.

“The highest level of uncertainty remains around business interruption,” she told a City & Financial online event.

Britain’s Financial Conduct Authority goes to court this month to clarify whether an array of wordings in business interruption insurance policies back claims for compensation for disruptions caused by pandemic lockdowns.

“A number of insurers are taking steps to make sure there is no ambiguity about who is and isn’t covered for

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