12 June 2015 Insurance

LMA & IUA launch Insurance Act guidance

The Lloyd’s Market Association (LMA) and International Underwriting Association (IUA) have partnered to offer a comprehensive guide to the Insurance Act 2015.

It is designed to help readers understand the principal changes embodied in the Act, the practical differences they might make and the potential challenges which may be faced under the new law.

The Insurance Act 2015 will come into effect in August 2016, implementing a more modern legal regime. The Act aims to increase transparency and certainty over the rules that govern contracts between insurers and businesses and reduce the number of legal disputes over time.

The guide was prepared by Harry Wright of barristers' chambers 7 King's Bench Walk in association with law firms Clyde & Co, Cooley LLP and Ince &Co, and with input of LMA and IUA member firms.

It supplements the seminar programme currently being run for Lloyd's syndicates and London insurers and will be followed by a shorter ‘quick-reference guide’, due for release in July, on points to consider in the underwriting process and in preparation of insurance contract wordings.

Kees van der Klugt, director of legal and compliance at the LMA, said: “We have been working with a highly experienced team on the guidance and on a series of seminars for members of the LMA and IUA.

“The detailed guide gives a full analysis of the changes brought about by the Act and some very practical points and examples which should be taken on board before the new regime comes into effect.”

Kees added that the LMA and IUA have shared the main guide at the drafting stage with LIIBA, BIBA and AIRMIC.

"We and the IUA are talking to our counterpart associations on what further work we can do to assist a smooth transition to the new regime and in terms of developing model wordings and, possibly, contract templates for use after August 12, 2016.  Our members will be fully involved in the further work,” he said.

Chris Jones, director of market services at the IUA, added: "There has been strong interest from member companies in attending seminars on the new Insurance Act. The legislation represents a fundamental change for some day to day operations and companies are keen to ensure they are well equipped to meet their obligations."

The guide is available to download from the LMA website:  www.lmalloyds.com/Act2015

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