Hiscox agrees to deal with UK policyholders over COVID-19 losses
(Reuters) — Hiscox has agreed to an arbitration settlement with a group of policyholders over business interruption losses due to the government's COVID-19 lockdown last year, the Lloyd's of London insurer said Monday.
Hiscox was one of six of the world's largest commercial insurers to lose a test case in Britain brought on behalf of policymakers by the Financial Conduct Authority.
Britain’s highest court said policyholders had a right to payouts from insurers who had argued many business interruption policies did not cover widespread disruption after government efforts to curb the virus from March 2020.
The judgment did not detail the size of the payments that insurers needed to make.
Hiscox said in a statement that its settlement with the Hiscox Action Group of policyholders was “in line with the Supreme Court Judgment and the proceedings have now been resolved to the mutual satisfaction of all parties.”
The terms of the settlement were confidential, it added.
Hiscox said in March that it had reserved $475 million overall for pandemic-related claims and that it had suffered “brand damage” after the high-profile court case.
The judgment affects dozens of insurers with similar policy wordings.
The FCA said earlier this month that €757 million in interim or final payments had been made by insurers to policyholders so far.
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