The Financial Conduct Authority (FCA) has revealed that approximately £472 million has been paid out in interim and final business interruption claim payments following the Supreme Court’s ruling on the test case.
Just over 10,200 business interruption policyholders, out of 21,140 who had had claims accepted, have received at least an interim payment from their insurer.
The FCA revealed in its letter to insurance company chief executives in January that it would collect and publish data on the progress of non-damage business interruption claims affected by the test case in which the Supreme Court largely backed policyholders denied payments following the outbreak of Covid-19.
According to the first batch of published data, the aggregate value of the interim/initial payments made for 2,030 unsettled claims is just over £192 million.
The aggregate value of the payments made for 8,177 claims where final settlements have been agreed and paid is almost £280 million, taking the total so far to £472 million.