Business Insurance Law & Risk Placement Reform

July 2014

At the core of our service to our brokers and customers is the reliability of the insurance contract. To that end we’re supporting the government’s Bill to Parliament relating to insurance law reform, designed to meet the needs of today’s customer.

In June we released a paper entitled Business Insurance Law & Risk Placement Reform, looking at the Law Commission’s proposed changes to insurance law to make it more suitable for modern business customers. Last month, reform was backed by Government introducing the Insurance Bill to Parliament to support the growth of Britain’s Insurance industry.

The Marine Insurance Act of 1906 still provides the legal foundation for all business insurance, but given that business today is very different to the turn of the 20th century, it seems fair to question whether it is still fit for purpose.

Using research from Mactavish (Specialists in Insurance Governance) our paper looks at the Law Commission’s recent review of the Business Insured’s Duty of Disclosure and the Law of Warranty and the law reform proposals. A significant part of which looks at whether the Marine Insurance Act is still suitable today.

Maurice Tulloch, CEO Aviva UK & Ireland GI said,

“At Aviva, we’ve been pushing for some time for contracts to be easier to understand and provide greater clarity for customers. A reciprocal enhancement to the level   of disclosure from our clients will lead to a greater understanding of their business and insurance needs from inception. Underpinning this is reform of insurance law to make it more relevant for today’s businesses.

“The proposed reading of the Law Commission Bill is a very welcome development. This Bill will deliver benefits to both customers and the industry, helping make the UK a great place to do business.”

We’re constantly driving progress that we feel is fundamentally required to meet the needs of our customers, including a major wording review in order to create clearer contracts.

Read our paper on Business Insurance Law & Risk Placement Reform.

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