Question reference: S5W-34909
- Asked by: Claire Baker, MSP for Mid Scotland and Fife, Scottish Labour
- Date lodged: 10 February 2021
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Current status: Answered by Fiona Hyslop on 19 February 2021
Question
To ask the Scottish Government what assessment it has made of how the Supreme Court judgement on the FCA business interruption insurance test case will impact on businesses and insurance policies in Scotland.
Answer
The Scottish Government is pleased that a final judgement has been reached by the Supreme Court in the Financial Conduct Authority (FCA) Business Interruption test case . The judgement was good news for many small businesses. The Financial Conduct Authority has identified 370,000 policyholders as holding 700 types of policies issued by 60 insurers that may be affected by the outcome of the test case.
This is an extremely worrying time for business owners and having claims settled quickly will bring much needed support at a time of continued uncertainty. That is why I recently wrote to the Association of British Insurers (ABI) and the FCA highlighting this issue and the need for claims to be settled timeously. I have also asked to be informed if any delays are anticipated and provided with detail on when claims are expected to be settled.
The Scottish Government welcomes the FCA and insurers work to communicate to all impacted policyholders what this judgement means for their claim. The FCA has set out its expectation that insurers should move quickly to resolve claims as determined by the judgement, making interim payments wherever possible.