The Financial Conduct Authority is preparing to go to court to resolve the ongoing contractual uncertainty surrounding business interruption insurance claims, as pressure mounts on insurance firms to support customers during the coronavirus pandemic.

The regulator said in a 1 May statement that it will also resolve the basis on which firms are making decisions to accept claims. As part of this, it plans to write to a “small number” of firms to ask if they are declining or intending to decline business interruption loans. The FCA expects responses by May 15.