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UK regulator files 'precautionary' BI test case appeal

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The Financial Conduct Authority (FCA) says it has filed a “leapfrog” application to appeal to the Supreme Court on aspects of the business interruption (BI) test case judgment.

As has reported, the UK High Court ruled against insurers on key points, but some insurer positions were also upheld.

A “leapfrog” is a rare form of appeal where a case which was heard by the High Court is appealed directly to the Supreme Court, skipping the Court of Appeal.

The FCA says today it believes “clarity was provided” in the September 15 judgment, but has filed the application “on a precautionary basis”.

“The FCA … continues to work closely and at speed with the eight insurers and two intervenors that participated in the test case to reach an agreement in principle on a range of issues whereby an appeal process would not be required, and payments would be made on eligible claims as soon as possible,” it says.

“Positive discussions continue with all parties. The FCA’s 'leapfrog' application has been filed on a precautionary basis in the event that this agreement is not reached by close of business Wednesday.”

The FCA says that it understands that seven insurer parties have made similar precautionary applications.

The Insurance Council of Australia’s business interruption test case is expected to be heard on Friday after it was fast-tracked to the NSW Court of Appeal.