Zurich Insurance Welcomes FCA Move on Coronavirus Business Insurance Claims
June 01 2020 - 5:16AM
Dow Jones News
By Pietro Lombardi
Zurich Insurance Group AG said it welcomes the update on the
U.K. Financial Conduct Authority's court action over business
interruption insurance policies.
The U.K. regulator said Monday that it has identified a sample
of 17 policy wordings on business interruptions so the courts can
decide which apply to the coronavirus pandemic amid disputes
between policyholders and insurers.
"Zurich welcomes the UK Financial Conduct Authority (FCA)
actions aimed at bringing clarity to policyholders and insurers on
coverage issues relating to business interruption stemming from the
Covid-19 outbreak," it said.
The Swiss insurer, which believes the wording of its policies
don't include cover for business interruption caused by the
coronavirus pandemic, backed its property and casualty claims cost
estimate of roughly $750 million for this year.
"In the unlikely event that the UK High Court were to judge that
all industry wordings reviewed in the FCA process do provide cover
for business interruption in relation to Covid-19, then Zurich
estimates that this would result in approximately $200 million of
claims net of reinsurance in addition to the scenario for full-year
2020 claims related to Covid-19 presented on May 14," it said.
Write to Pietro Lombardi at pietro.lombardi@dowjones.com
(END) Dow Jones Newswires
June 01, 2020 05:01 ET (09:01 GMT)
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