IAG faces investor class-action lawsuit over COVID-19 BI exposure

Insurance Australia Group Ltd. is facing a class-action lawsuit by some investors for allegedly breaching its disclosure obligations and misleading the market about its exposure to COVID-19 related business interruption risks, Business News Australia reported. Initially, IAG stated that its policies excluded BI coverage for “quarantinable diseases.” However, the NSW Court of Appeal’s test case ruling made the pandemic exclusion clauses void, making IAG raise its provision for potential BI claims to $865 million.