Insurers Face Covid Hit as U.K. Court Ruling Favors Clients
- FCA sought to bring clarity to disputes over business coverage
- Hiscox shares rise as impact seen below worst-case estimate
This article is for subscribers only.
Insurers face the prospect of further payouts after a London court ruled in favor of policyholders on most issues in a dispute over Covid-19 claims.
Hiscox Ltd., RSA Insurance Group Plc, Zurich Insurance Group AG and five other companies were named in the case, which was brought by the U.K.’s Financial Conduct Authority in an effort to bring legal clarity to policies held by at least 370,000 clients. The ruling is binding for the eight insurers, and could affect others that have policies with similar wording, including Allianz SE, American International Group Inc. and Chubb Ltd.