Australian court ruling on business interruption in favour of insurers – market talk

Credit Suisse analyst Doron Kur said in a note that Australia’s High Court’s decision to deny special leave to appeal the second business interruption test case judgment meant that Australian general insurers would not be required to pay most business interruption claims. He said it was a very positive for insurers, the only negative would be that JobKeeper would not be deducted from any valid claims and that insurers would also be responsible for interest charges. “There may be other cases that go beyond established principles,” Kuhl said, adding that “insurers still need to go through their portfolios to assess which may take about three to six months.” and QBE’s Outperform rating. (alice.uribe@wsj.com)

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