Insurer approaches to causation ‘legally flawed’ FCA argues in BI test case

The Financial Conduct Authority has alleged that insurers’ approach to causation in the business interruption test case is “legally flawed” and the defendants have “overlooked” contractual contexts.

The FCA is arguing on behalf of policyholders throughout the trial.

In its skeleton argument, the regulator submitted that insurers’ defences have a common theme on causation arguing that Covid-19 was not the insured peril.

The regulator stated: “…namely that the proximate cause or ‘but for’ cause was not the insured ‘insured peril’ but something else and that something else is the nationwide outbreak of Covid-19 and the impact of it and/or of the government response to it.”

The regulator