The UK Supreme Court will this month hear appeals brought by insurers and the regulator over a business interruption test case decision handed down in September.

The Financial Conduct Authority (FCA), which launched the initial High Court case, says the fast-tracked action, which jumps the Court of Appeal, will be heard from November 16 and the hearing is expected to last four days.

“We believe that this ‘leapfrog’ appeal to the Supreme Court is the fastest way to get legal clarity for all parties in the event that it is not possible to find a solution with insurers which resolves outstanding issues, before the appeal takes place, to enable pay-outs on eligible claims,” the FCA says.

The FCA, Arch Insurance, Argenta Syndicate Management, MS Amlin Underwriting, Hiscox Insurance Company, QBE, Royal & SunAlliance and the Hiscox Action Group filed applications seeking permission to appeal.

The High Court judgment handed down on September 15 made separate assessments on 21 sample wordings from eight insurers, while looking at some common key issues.

The decision found in favour of QBE on two wordings tested, but ruled against the insurer on a third. The company confirmed to insuranceNEWS.com.au today that it would be going ahead with the appeal.

Lawyers for the FCA say the overall High Court findings tilt toward policyholders. The regulator estimates that in addition to the sample wordings, some 700 types of policies across 60 insurers and 370,000 policyholders could be affected by the decision.

For some policies, the ruling meant cover was not limited to disease outbreaks occurring exclusively or wholly within a specified radius, meaning it was available for the COVID-19 pandemic. The decision also looked at the way claim payments are adjusted for circumstances.

In Australia, the NSW Court of Appeal is yet to deliver its judgment on a case testing whether business interruption disease exclusions referencing the Quarantine Act and “subsequent amendments” are valid for restrictions triggered by COVID-19. The legislation was repealed in June 2016 and replaced with the Biosecurity Act 2015.

The full bench heard arguments on October 2 and adjourned to consider its decision.