By Pietro Lombardi 
 

Zurich Insurance Group AG said it welcomes the update on the U.K. Financial Conduct Authority's court action over business interruption insurance policies.

The U.K. regulator said Monday that it has identified a sample of 17 policy wordings on business interruptions so the courts can decide which apply to the coronavirus pandemic amid disputes between policyholders and insurers.

"Zurich welcomes the UK Financial Conduct Authority (FCA) actions aimed at bringing clarity to policyholders and insurers on coverage issues relating to business interruption stemming from the Covid-19 outbreak," it said.

The Swiss insurer, which believes the wording of its policies don't include cover for business interruption caused by the coronavirus pandemic, backed its property and casualty claims cost estimate of roughly $750 million for this year.

"In the unlikely event that the UK High Court were to judge that all industry wordings reviewed in the FCA process do provide cover for business interruption in relation to Covid-19, then Zurich estimates that this would result in approximately $200 million of claims net of reinsurance in addition to the scenario for full-year 2020 claims related to Covid-19 presented on May 14," it said.

 

Write to Pietro Lombardi at pietro.lombardi@dowjones.com

 

(END) Dow Jones Newswires

June 01, 2020 05:01 ET (09:01 GMT)

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