Regulatory Alerts2020-05-12
Added · Updated
Joint Communication 5 of 2020: Covid-19 Business Interruption Insurance
The Financial Sector Conduct Authority and Prudential Authority issued this joint communication to clarify the regulatory position on Business Interruption insurance claims during the Covid-19 pandemic. The Authorities distinguish between standard policies requiring proven physical damage and those with infectious disease extensions, mandating clear communication of coverage terms and mid-term exclusions to policyholders. Insurers are required to process claims fairly without undue delay, provide regular feedback, and avoid retroactively mandating coverage for excluded Covid-19 losses to prevent material solvency risks.