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UK court allows ‘leapfrog’ for BI test case appeals

The UK High Court has allowed a fast-track process for appeal applications that may be lodged following the business interruption test case that it decided last month.

The Financial Conduct Authority (FCA) says “leapfrog” certificates granted will allow applications to go straight to the Supreme Court without matters first heading to the Court of Appeal.

Test case ruling orders made in a follow-up hearing on Friday included a series of court declarations, which FCA says it will publish as soon as available.

“In light of the hearing, the FCA will review the final declarations and decide on its next steps,” it says.

“These will include pressing on with the application to appeal to the Supreme Court while continuing discussions with insurers and action groups to find a solution that avoids the need for appeal and enables pay-outs on eligible claims as quickly as possible.”

Insurers that would be required to pay-out on previously denied wordings are also clarifying their position around possible appeals.

Other parties granted “leapfrog” certificates were Hiscox Action Group, representing policyholders, and insurers Arch, Argenta Syndicate Management, MS Amlin, Hiscox, QBE and Royal & SunAlliance.

“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,” the UK insurer said last week.

FCA says its objective throughout the case has been to achieve clarity for everyone involved as quickly as possible.

“However, we recognise that this case has always involved complex issues,” it said.