LONDON, May 1 (Reuters) - Britain's financial watchdog said
it would urgently ask the courts to clarify uncertainty over the
inability of some insurance customers to obtain compensation for
disruption caused by the coronavirus pandemic.
A national lockdown to fight the pandemic has forced many
companies to temporarily suspend operations and furlough staff.
The Financial Conduct Authority said it was seeking a
declaration from the court due to continuing concerns about the
lack of clarity and certainty for some customers making business
interruption claims, and the basis on which some firms are
making decisions in relation to claims.
"This will assist both insurers and the insured. It will not
determine how much is payable under individual policies, but
will provide the basis for doing so," the FCA said in a
statement on Friday.
The FCA also set out measures to support consumers and
businesses who hold insurance products and who are facing other
issues as a result of coronavirus.
"The package of measures sets out the FCA's expectations
that insurance firms should consider whether their products
still offer value to customers in the current situation and
whether they can be doing more for those suffering a financial
impact because of coronavirus," the watchdog said.
(Reporting by Huw Jones; editing by Carolyn Cohn)
