UK and Bermuda insurer Hiscox has agreed a settlement with members of the Hiscox Action Group for business interruption losses suffered during a COVID-linked lockdown imposed by the UK Government last year.

The settlement terms for losses incurred between March and July last year have not been disclosed.

UK insurers expect to pay out more than £1.8 billion ($3.32 billion) in COVID-19 related claims following a January test case in the UK Supreme Court which found in favour of policyholders.

Private arbitration proceedings were brought by the Hiscox Action Group last year to determine matters not resolved by the test case.

“The settlement is in line with the Supreme Court Judgment and the proceedings have now been resolved to the mutual satisfaction of all parties,” Hiscox said.

Along with seven other insurers, Hiscox participated in the industry test case, commenced by the Financial Conduct Authority to gain certainty on specific issues around the handling of business interruption claims related to the pandemic.