Reading: Understand new insurance act or risk gaps in cover, warns JLT Specialty

JLT Specialty, the Reading-based risk practice for insurance broking and risk management advisers, has launched a new advice bulletin which will help companies understand the likely impact of the Insurance Act 2015 (the Act). 

When it comes into effect on August 12, 2016, the Act will govern all business contracts of insurance, reinsurance and retrocession governed by the law of England & Wales, Scotland or Northern Ireland.

Peter Cant, head of  JLT Specialty, commented: “The new Act is the first significant change since the Marine Insurance Act 1906 and impacts on all contracts of insurance governed by the laws of England & Wales, Scotland & Northern Ireland placed after August next year.  It will bring about some substantial changes in the way in which both insureds and insurers arrange insurance and on the role of the insurance broker acting for their clients.”

The Insurance Act Update bulletin explains key changes to the Act and outlines the actions businesses should take to ensure compliance with the law. Key changes include the ways in which risks must be disclosed at the outset of cover, proportionate remedies for a breach of the duty of disclosure, adjustments to how non-compliance with policy terms will operate, and remedies for fraudulent claims.

Cant added: “This is a major change in how insurance protection is purchased and the terms on which cover will be provided. It is essential those involved in buying insurance or responsible for risk management, health & safety procedures or managing staff keep abreast of the implications and the procedures that now need to be followed.”

A full copy of the bulletin can be downloaded at: www.jltspecialty.com/insuranceactupdate