Australian Court Decision on Business Interruption Positive for Insurers -- Market Talk

The Australian High Court's decision to reject a special leave to appeal the second business-interruption test case judgment means Australian general insurers won't need to pay the majority of business interruption claims, Credit Suisse analyst Doron Kur says in a note. This is very positive for insurers, with the only small negative being that JobKeeper cannot be deducted from any valid claims and insurers will also be liable for interest charges, he says. "There could be other cases that fall outside the established principles," says Kur, adding that "insurers still need to work through their portfolios to assess claims which could take around three to six months." CS keeps outperform ratings on IAG, Suncorp and QBE. ([e-mail])

(END) Dow Jones Newswires

10-16-22 1931ET