News Article

The 2015 Insurance Act is a legal framework affecting every business insurance policy placed, renewed or amended since 12th August 2016. 

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This Legislation modernises insurance law and aims to make recovery from insurers simpler and fairer in the event of claim. However, these benefits are dependent on the customer making a ‘fair presentation of risk’. 

What are the key concerns for the customer?

Critical changes for customers centre on the new duty of fair presentation. The existing obligations of good faith and ensuring accuracy of material information both remain. he Act, however, also specifies what a customer must do for a presentation to count as fair. There are two key elements here, firstly the customer must make adequate enquiries within their business to identify and verify information relevant to the risk(s) concerned. These must include all relevant knowledge of the ‘senior management’ of the business and those involved in buying the insurance (including the broker). Reasonable enquiries must also be made of any relevant third parties involved with the business, including external consultants, contractors and anyone insured by the policy. 

‘Clear & Accessible’ presentation of risk information:

• This addresses the clarity of presentation and how able insurers are to assess the risk. ‘Data dumping’ of large amounts of information without signposting is unacceptable. There is also an additional requirement to adequately highlight unusual activities and/ or known areas of concern that could affect the risk. 

For any further advice or information please contact the team here at SFB Consulting. Our offices are based in Bishop’s Stortford and London, but we offer our services and consultancy UK wide. 

T:01279 874 676 

E:info@sfb-consulting.com