The wordings represented by Zurich Insurance in the Financial Conduct Authority test case reportedly do not provide cover for business interruption in relation to the COVID-19 outbreak, a decision the insurer welcomes.
Zurich says this decision is supported by the limited numbers of claims relating to policies with these wordings received to date and the very low level of disputes over coverage.
Based on the sample of policy wordings presented by the FCA, the UK High Court decided this week that most, but not all, of the disease clauses provide cover for losses connected to COVID-19.
Zurich says it is reviewing the broader implications of the judgment in relation to wordings represented by other insurers in the FCA test case.
“While we welcome the judgment of the High Court in respect of Zurich’s wordings, we recognize that COVID-19 has caused immense suffering for our customers, their families and their businesses,” said Group CEO Mario Greco.
“We will continue to do all we can to support our customers and our communities at this time.”
COVID-19 had an overall impact on Zurich of $686 million in the first half of 2020, with the insurer also noting the impact of the crisis on financial markets leading to a dip in the performance of its investments, most notably in hedge funds.