Regulatory Alerts2020-06-19
FSCA Stance on Business Interruption Insurance During COVID-19
The Financial Sector Conduct Authority issued this communication to clarify the regulatory stance on Business Interruption insurance claims during the COVID-19 pandemic. It mandates insurers to process claims under the Radius, Notifiable Disease, and Closure categories by accepting reasonable proof of business interruption at or near policy premises, while explicitly excluding the national lockdown as a standalone trigger and upholding General Exclusion clauses. Insurers must adjust their burden of proof requirements and pay valid claims promptly, or face formal directives under the Financial Sector Regulation Act for unfair customer treatment.
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