Guy Carpenter On Reinsurance Implications
Following the ruling by the UK Supreme Court on policyholders affected by the COVID pandemic, Guy Carpenter has produced a paper which looks at the reinsurance implications of the decision.
Compiled by David Priebe, Chairman, Guy Carpenter, Lara Mowery, Global Head of Distribution, Guy Carpenter and Michael Sevi, General Counsel and Chief Compliance Officer, Guy Carpenter.
“On January 15, 2021, the UK Supreme Court issued its widely anticipated decision in the Financial Conduct Authority’s business interruption [BI] test case,” the paper states.
“The FCA brought the test case to resolve uncertainty for certain BI policyholders affected by the COVID pandemic. Although the Court ruled that some forms of BI insurance cover COVID losses, the Court adopted a narrow definition of a COVID ‘occurrence’ — an illness suffered by just one person or arguably several people in one household — that has raised questions about the meaning of the word ‘occurrence’ in other contexts.”
The full paper follows below [PDF here]:
