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ACGLP - Arch Capital News Story

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Sector
Financials
Size
Large Cap
Market Cap £11.54bn
Enterprise Value £14.22bn
Revenue £6.39bn
Position in Universe 685th / 6846

UPDATE 1-UK Supreme Court hands businesses victory in COVID-19 insurance ruling

Fri 15th January, 2021 10:02am
(Adds details, background)
    By Kirstin Ridley and Carolyn Cohn
    LONDON, Jan 15 (Reuters) - The UK Supreme Court ruled on
Friday that thousands of businesses should be insured for some
losses amassed after a national lockdown to curb the coronavirus
pandemic in a test case that pitched the markets regulator
against major insurers.
    Six of the world's largest commercial insurers -- Hiscox
 HSX.L , RSA  RSA.L , QBE  QBE.AX , Argenta  HNRGn.DE , Arch
 ACGL.O  and MS Amlin  MITSID.UL  -- said many business
interruption policies did not cover widespread disruption after
Britain's first national lockdown last March.
    But senior judges said payouts should be triggered after
scrutinising 14 non-damage insurance policy clauses -- which
cover disease, denial of access to business premises and hybrid
clauses -- in a resounding victory for policyholders and the
regulator.
    The Financial Conduct Authority (FCA) took insurers to court
last June in a case that has been expected to have ramifications
for 370,000 policyholders, 60 insurers and billions of pounds in
claims because many policies have similar wordings.
    Smaller businesses, from restaurants to nightclubs and
wedding planners to beauty parlours, said they faced ruin after
attempts to claim compensation for business losses during the
pandemic were rejected by insurers -- and the test case has been
closely-watched overseas as similar battles brew.

 (Reporting by Kirstin Ridley and Carolyn Cohn
Editing by Rachel Armstrong)
 ((kirstin.ridley@thomsonreuters.com; +44 (0) 207 513 5666;))
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