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BIBA creates Insurance Act adaptation guide
Written by staff reporter
The Insurance Act 2015 came into force almost a year ago and the Enterprise Act 2015 took effect on 4 May 2017 impacting both the placement of commercial insurance and the way claims are considered.
To help bring about clarity around some of the more challenging adaptation issues, BIBA, in conjunction with insurance governance specialist, Mactavish has launched its Insurance Act 2015 & Enterprise Act 2016 Adaptation Guide.
As a follow-up to its earlier Introduction and Implementation guides, BIBA's new guide focuses on the adaption issues that brokers and their customers find most challenging.
Taking scenarios from a fictitious case study the guide provides a practical summary of the matters generating concern around Fair Presentation, Contracting Out and Post Loss Conditions. It goes on to consider the implication of the Enterprise Act and what businesses will have to show to take advantage of its provisions in respect of damages for late payment of claims.
Chief executive of BIBA, Steve White, said these legislative changes are considerable and clarity around certain issues is needed. "We wanted to understand from our members what they see as the biggest challenges in adapting to them. The guide has the support of insurers in the shape of our sponsors as well as the ABI, AIRMIC, CII, CILA and LIIBA. Having the insurance market work together will help to bring clarity about adapting to the Acts.”
"Our survey showed the areas which are proving most challenging to navigate but also highlighted that our members do believe the Act will improve professionalism in placement, one of its aims. The fact that this guide has broad market support points towards it being a key document to bring clarity to the operation of the Acts.”
Mactavish CEO Bruce Hepburn added: “Former Law Commissioner, David Hertzell, who drafted the Insurance Act helped us bring this guide together. It draws on existing case law to suggest how the Act might be interpreted and concentrates on the real concerns of brokers in acting for their clients when placing commercial business. Using a business example helps make the issues real and we hope to see a positive conversation in the sector around working together under the Acts.”