Read Arch’s involvement in the recent FCA Test Case, as the FCA looks to resolve some key contractual uncertainties relating to COVID-19 Business Interruption claims.
The below questions and answers refer to the recent FCA Test Case, as the FCA looks to resolve some key contractual uncertainties relating to COVID-19 Business Interruption claims in the High Court.
How is Arch involved in the FCA Test Case?
From all the policies put forward, the FCA selected a representative sample of 17 policy wordings from 16 insurers, including Arch Insurance (UK). The FCA identified policies which they feel are representative of the key arguable issues.
They have invited a limited number of insurers to participate on the basis of securing the maximum relevant coverage for relevant policies whilst minimising the number of parties to make the process as swift as possible.
We were pleased to be part of this process and to be able to continue to collaborate in this project to accelerate clarity.
What are the next steps for Arch?
We will continue to engage actively with the FCA during this process to achieve a prompt resolution to any issues relating to BI coverage for our policyholders.
We will continue to work closely with our brokers and policyholders to assess coverage for ongoing COVID-19 related losses. We have already been paying COVID-19 related claims, for our small number of affected policies, and will continue to do so. Our claims team is fully resourced and working hard to ensure that the claims process is conducted in an efficient and effective manner.
In addition, we have already instigated a number of procedures to reduce the impact of any temporary financial distress to our customers. These include:
- Payment holidays to customers who have purchased cover on an instalment basis.
- The option for customers to switch to an instalment basis to help to spread the cost of their premiums.
- Revaluation of premiums and quick return payments where exposures have changed.
- Removal of cancellation fees for customers whose businesses have unfortunately had to close permanently.
We have also reviewed and adapted our products to best protect our customers in the current climate. Examples include:
- Changing cover to support customer who have changed their business to enable them to produce motors for life-saving ventilators.
- Waiving unoccupancy terms where clients cannot get to their premises.
- Where vehicles are now off the road, reducing motor cover to Fire and Theft only.
We have also sought to provide a range of other ways to support our customers. These include:
- Arch Business Protection- our tailored consultancy service to help clients mitigate risk, boost employee engagement and wellbeing, and support robust business continuity planning.
- 24/7 confidential helpline- providing stress counselling and advice for policyholders and their families.
- Our online COVID-Hub- a portal which provides a range of materials and information to help support our customers.