Update on UK Insurance Industry Test Case
Hiscox Ltd update on UK Insurance Industry Test Case
Hamilton, Bermuda (29 September 2020) - Hiscox Ltd (LSE:HSX), the international specialist insurer, provides an update on the UK insurance industry test case on the contractual interpretation of business interruption wording in certain UK property insurance policies ("the Industry Test Case").
As part of the Framework Agreement governing the Industry Test Case, the FCA and the Insurers agreed to explore the possibility that the Test Case would be suitable for a so-called 'leapfrog' appeal direct to the Supreme Court to ensure an expedited resolution of any appeal.
In order to preserve the ability of any appeal to proceed straight to the Supreme Court, Hiscox, together with certain other Insurers and the FCA, has taken the necessary procedural step of applying to the High Court for a leapfrog certificate before yesterday's statutory deadline for doing so had passed. However, Hiscox has not yet made a decision on whether it will seek to appeal.
At the next hearing on 2 October, the Court will decide the appropriate declarations ("the Declarations") to be made to give effect to the judgment it handed down on Tuesday 15 September ("the Judgment"). The Declarations are the orders from the Court as to how the conclusions set out in the Judgment should be applied to the claims and circumstances of relevant individual policyholders. Discussions are ongoing with the FCA and other parties to try to resolve any outstanding issues in line with the original Judgment before this date.
Hiscox remains committed to an expedited resolution and today's application, pending this hearing, preserves speed of process for all parties should there be an appeal.
In the event that any party seeks permission to appeal, Hiscox may remain a party to any subsequent proceedings which could impact its ability to progress claims until the final outcome of the Industry Test Case is known.
Hiscox will communicate an update on the Industry Test Case to relevant policyholders after the hearing on 2 October, including any impact that an appeal by the FCA, the Interveners or any other party may have on its ability to progress claims. In the meantime Hiscox will continue to work with brokers and policyholders to gather information to enable it to process claims without delay once the final outcome is known.
The estimates published by Hiscox on 15 September of the number and value of claims arising from business interruption are unchanged.
For further information:
Marc Wetherhill, Group Company Secretary, Bermuda +1 441 278 8321
Kylie O'Connor, Group Communications Director, London +44 (0)20 7448 6656
Ryan Thompson, Investor Relations Manager, London +44 (0)20 7448 6522
Tom Burns +44 (0)20 7404 5959
Simone Selzer +44 (0)20 7404 5959
Notes to editors
About the Hiscox Group
Hiscox is a global specialist insurer, headquartered in Bermuda and listed on the London Stock Exchange (LSE:HSX). Our ambition is to be a respected specialist insurer with a diverse portfolio by product and geography. We believe that building balance between catastrophe-exposed business and less volatile local specialty business gives us opportunities for profitable growth throughout the insurance cycle.
The Hiscox Group employs over 3,400 people in 14 countries, and has customers worldwide. Through the retail businesses in the UK, Europe, Asia and the USA, we offer a range of specialist insurance for professionals and business customers as well as homeowners. Internationally traded, bigger ticket business and reinsurance is underwritten through Hiscox London Market and Hiscox Re & ILS.
Our values define our business, with a focus on people, courage, ownership and integrity. We pride ourselves on being true to our word and our award-winning claims service is testament to that. For more information, visit www.hiscoxgroup.com.
Hiscox response to COVID-19
Hiscox is committed to supporting the international response to this pandemic. The Group is supporting employees around the world with flexible and remote working as well as socially distanced office working and the provision of mental health and wellbeing services. Wherever possible operations have been reorganised to deploy more employees to provide customer support. The Group has committed to stand by existing employees by retaining all current roles during this period on full pay. Hiscox has not furloughed any staff and has not accessed any UK Government support schemes.
Hiscox is working with the rest of the insurance industry, including the Association of British Insurers, to identify where it can direct financial support that will have the most impact. Through the Hiscox Foundation, the Group is also supporting vulnerable groups via donations to established charities such as the Trussell Trust and Age UK and around the world we are donating to food banks, the Red Cross and Personal Protective Equipment (PPE) funds.