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FCA BI Test Case Verdict – September 15th 2020

We are pleased that the high court has returned their verdict on the FCAs test case today. On the face of the headlines it seems like a positive result for the handful of policyholders with wordings that have been considered by the court and other similar wordings.

It is important that policyholders do ensure that any generalisation of the headlines is taken at face value, there were 21 policy wordings considered buy the case, there could be up to 700 similar wordings in the market which may well be affected, out of tens of thousands of policies in the UK market, but each affected case and each wording will need to be taken based on the specific circumstances. Some of the press reports seem to have broadly brushed over the complexities of this judgement to infer that this will be good news to all policyholders, it will certainly be more complex than that.

The FCA represented policyholders in the action and have seemingly been successful in their pursuit of a positive outcome for policy holders, as agent of the policyholder Ravenhall welcomes the judgement and the clarity it sets to bring, moving forward, as the details of the 150 page judgement are understood, these can be applied to the specific circumstances of the affected policyholders and we can review how this impacts on the claims submitted to date, and any that need to be submitted as a consequence of this judgement.

The FCAs announcement can be read here

A summary of the judgement by the FCAs counsel can be found here

The judgement is available here

What it means for affected policy holders. 

For those who have been affected we expect we will hear about the next steps from their insurers in short order. Ravenhalls claims team will also be pushing insurers for updates and considering how each case is affected, as the judgement is understood and applied to each case. Please be aware that there is the possibility that insurers may appeal the judgement, which will extend this process further, should they be give the rights to do so.

We are, with our advisors and retained specialists, starting to understand the judgement and how it impacts on individual policyholders circumstances, we will also be pressing insurers to understand their next actions and ensuring that these policyholders which are affected by the judgement get the best possible outcome from their policy as swiftly as possible.

if you have any questions about whether you are affected or whether you can claim under your policy, please contact us or get in touch with your Ravenhall point of contact.