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UK business interruption settlements rise to $855 million

UK business interruption settlements for COVID-19 related claims have reached £467.3 million ($854.8 million), the Financial Conduct Authority (FCA) says in its latest monthly update.

Final settlements have been agreed and paid for 16,159 policies, while interim or initial payments of £289.6 million ($529.8 million) have been made on an additional 4188 claims.

FCA says the data, being collected following a test cast judgment, shows that 20,347 business interruption policyholders, out of the 37,702 who had claims accepted, have received at least an interim payment.

A breakdown of information by insurer shows that QBE UK and the UK branch of its Europe operations have accepted 2489 claims. All information required has been received on 990 claims and final payments have been made on 651.

FCA also said last week it would be revising some previously released figures after a small number of firms said they had been reporting incorrectly. The May estimate for final settlements paid may have been overstated by up to 10%.

The UK Supreme Court handed down its business interruption judgment on January 15, concluding the legal appeals process on the test case brought by the FCA.