BIBA welcomes implementation of UK Insurance Act 2015
The British Insurance Brokers’ Association (BIBA) has welcomed the fact that the UK Insurance Act 2015 will be implemented today (12 August). The Act was designed last year with the goal of increasing professionalism in the placing of commercial insurance, and aims to provide fairer outcomes for customers whilst also bringing in new considerations for brokers and businesses when arranging insurance.
BIBA call this change the ‘biggest change in insurance law in more than 100 years’ – the Act includes many changes that the organisation has been lobbying for. These include ‘terms not relevant to the actual loss’ to be outlawed, as well as outlawing the ‘basis of content’ clauses in many policies.
New requirements for customers are also included in the Act, including ‘duty of fair presentation’ and the obligation of ‘reasonable search’.
Steve White, BIBA’s chief executive, said that the insurance industry ‘has never experienced such massive change in the legislation governing our practices’ and is calling on insurers who may choose to ‘contract out’ of the Act or parts of it to be clear about this, and bring any disadvantageous terms to the attention of brokers.
“We are delighted that the Insurance Act is now in force. In the lead up to today, our members asked for guidance and I am pleased that we have been able to provide a number of publications to support them,” added White. “We know there will not be absolute certainty until some of the Act’s provisions have been tested in court, but armed with all of the information available, our members will be able to advise customers on the provisions of the Act.”