Hiscox has reached a settlement with the Hiscox Action Group (HAG) following the Supreme Court’s ruling in January.
HAG, which represents more than 400 business interruption policyholders, sought compensation from Hiscox over unpaid losses suffered as a result of the lockdown imposed by the UK government between March and July 2020 in response to the Covid-19 pandemic.
Along with seven other insurers, Hiscox participated in the industry test case, commenced by the Financial Conduct Authority to gain certainty on specific issues of law of general importance to the handling of business interruption claims arising out of the Covid-19 pandemic.
HAG also participated in the test case, which was determined in a judgment of the Supreme Court in January 2021.
Private arbitration proceedings were brought by HAG against Hiscox in 2020 to determine matters between the parties not resolved by the test case.
According to a Hiscox statement, the undisclosed settlement is in line with the Supreme Court judgment and the proceedings have now been resolved to the mutual satisfaction of all parties.