General Insurance Article - CMS launches new Insurance Act resource

 Ed Foss, head of CMS London’s Insurance and Reinsurance Group,

 says that with just over a year to go until the Insurance Act comes into force, there are significant issues for the market to consider.

  

 “The Insurance Act 2015 introduces major changes to insurance law in the UK and our Insurance Act Zone offers an easy to use one-stop resource for our clients, explaining the changes and analysing how they will affect them. Insurers, insurance brokers and their clients need to start considering the implications of the Act which will affect all stages of the insurance process, from placement to claims, and all lines of business.

  

 “The Act makes key changes to the duty of disclosure in commercial insurance contracts, warranties and insurers’ remedies for fraudulent claims. It comes into force on 12 August 2016 and will apply to contracts from that date although some insurers and policyholders are considering whether to “opt in” to the Act earlier or, as it is a default regime, opt out.”

  

 The reforms are the outcome of nine years’ consultation by the Law Commission and Scottish Law Commission which also resulted in the passing of the Consumer Insurance (Disclosure and Representations) Act 2012. The Consumer Insurance Act now governs the law relating to the duty of disclosure for consumer insurance contracts.

  

 Ed adds a reminder that the industry faces an additional legal change in a matter of months, on which the Insurance Act Zone will also provide help and advice. “The Insurance Act has amended the Third Parties (Rights against Insurers) Act 2010 so that the 2010 Act can be brought into force. It is expected that the 2010 Act will come into force later this year and this will have a significant influence on claims being made against insolvent insureds.”