Clifford Chance

UK: Coronavirus and the FCA expectations of the insurance sector

13 May 2020

On 1 May the Financial Conduct Authority ("FCA") announced a series of statements and guidance to firms regarding the impact of coronavirus on the insurance sector.  There has been an understandable level of focus on the FCA's plan to seek judicial interpretation of certain business interruption ("BI") clauses, but there are other key issues arising from the FCA statements that may, in the long run, have just as significant an impact on firms.

This briefing note looks at the FCA's proposed guidance on the impact of the lockdown on the value of insurance products and how firms should address this issue and the risk of mis-selling claims against insurers and intermediaries in relation to BI policies.

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