A draft judgement over the UK’s Financial Conduct Authority’s (FCA) business interruption (BI) test case is expected by mid-September and it is likely to have significant implications for (re)insurers who operate under English Law.
The impact of Covid-19 on claims begins to materialise and insurers are starting to adapt their underwriting strategies. While developments remain fluid, some general tendencies are becoming apparent. Acknowledging these trends should help in the preparation for policy renewals.
Many countries were caught off guard when SARS-CoV-2 spread among the population. Since epidemics and pandemics are likely to become more common in the future, governments and insurers are looking at options to increase the financial resilience of societies and economies ahead of the potential next event.
The need for social distancing is shifting the focus on services and applications in the commercial real estate sector towards solutions that make staff feel safe when they finally return to the workplace. Employers are responsible for the protection of all workers in the gradual return to work.
Businesses owe a duty of care towards employees and customers to protect them from any foreseeable harm. The Covid-19 outbreak has changed the expectations of stakeholders and increased the risk of potential legal disputes.
Insurers have submitted their defences for the Financial Conduct Authority (FCA) Property Damage and Business Interruption (PDBI) COVID-19 test case while two groups representing policyholders have been allowed to intervene.
Consulting with staff to find out what will make them feel comfortable when returning to their workplace after lockdown rules are relaxed is crucial to ensure that the plan will be successful in protecting staff and clients from COVID-19.
As some governments begin to ease COVID-19 restrictions, researchers are warning that the frequency of pandemics is likely to rise in the future. It would therefore be wise for governments and societies to act on some of the lessons from the COVID-19 crisis.