Hiscox and other insurers look at test case appeal to resolve coronavirus business claims

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Hiscox Ltd (LON:HSX) has proposed using one final test case as a way to settle the row over cover for businesses affected by coronavirus.

Along with other insurers, Hiscox wants financial regulator the FCA to agree that this test case would be suitable for a so-called ‘leapfrog’ appeal direct to the Supreme Court to ensure a fast resolution.

An application has already been made to the High Court for the leapfrog certificate, though Hiscox said it had yet to make a decision on whether it will seek to appeal the original rulings of 15 September.

That ruling left the FCA and policyholders claiming it had gone in their favour and said it opened the way for GBP1.2bn of compensation claims from 370,000 affected small businesses.

A hearing will take place on 2 October on how conclusions from that judgment should be applied.

Hiscox, meanwhile, said that following the ruling it estimated additional COVID-19 claims arising from business interruption would be less than GBP100mln net of reinsurance.

Today, the FTSE 250 group added it ‘was committed to an expedited resolution and today’s application, pending this hearing, preserves speed of process for all parties should there be an appeal’.

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