The new Insurance Act 2015 replaces law that’s been in place since 1906. It applies to all non-consumer insurance policies incepted or renewed on or after 12 August 2016, when the Act came into force.
The Act has been designed to provide a more up to date framework for commercial insurance in England and Wales, with a focus on transparency and certainty over the rules that govern contracts between commercial policyholders and insurers.
The changes mean the most relevant people may need to be involved to ensure compliance. This could include the highest levels of management, but will vary depending on an organisation’s structure. It can also include those covered by the insurance, as well as others who may hold information – so advisers, consultants and suppliers.
There’s a general perception in the employee benefits world that the Insurance Act will not have a major impact on health and risk insurances. However, the Act could have significant implications as insurers are adopting differing stances on what constitutes a fair presentation of a risk and the remedies they will offer if material facts emerge which affect a claim.
It is hoped that in the long term the Act will result in greater certainty and equality in the position between policyholders and their insurers.