The radical shift in the way insurance is regulated and thus conducted in the UK will put the insurance industry operating there under pressure. Intelligent Insurer investigates.
The Insurance Act 2015, which comes into force in the UK in August 2016, has been hailed as the biggest shake-up of insurance law in the country since 1766 and it will transform the way that insurance is conducted, say industry experts.
Insurers can no longer ‘sandbag‘ their underwriting with warranties, say lawyers specialising in this field, and to ensure ‘fair presentation of the risk‘, they will need to spend more time and money on getting to know their clients’ businesses and specific needs inside out.
In essence, the new act puts the insurers, rather than policyholders and their brokers, in the dock—responsible for ensuring that policies are right for customers and that they understand their implications fully.
The Insurance Act 2015, Tanguy Le Gouëllec de Schwarz, Goldberg Segalla, London, Europe