Insurance Bill approval welcomed by Airmic

The Insurance Bill, which will update the 100 year-old rules governing contracts between businesses and insurers, was passed by the UK Parliament yesterday, February 3.

The bill was passed unanimously in the House of Commons  and is now only waiting for Royal Assent to become law.

Airmic, the body that represents UK corporate insurance buyers and risk managers, has welcomed the approval of the fundamental reform.

The association’s chief executive officer (CEO) has urged the insurance market to move quickly in implementing the changes.

John Hurrell, Airmic CEO, said: “We are delighted to see this important Bill complete its passage through Parliament. The changes bring this country’s insurance contract law for commercial insurance up-to-date and fit for the modern world.”

There is a transitional period of 18 months built into the Bill so the changes will not come into force until the second half of 2016.

“So far the UK insurance market has been positive and responsive to the proposed changes so we hope they will choose to move more quickly than this. We shall certainly be encouraging our members to open a dialogue with their brokers and insurers to secure the important benefits of the new legal framework as soon as possible.”