11 June 2015
LMA and IUA launch Insurance Act 2015 Guidance
The LMA and IUA have published a comprehensive guide to the Insurance Act 2015. It is designed to help readers to understand the principal changes embodied in the Act, the practical differences they might make and the potential challenges which may be faced under the new law.
The guide is available to download from the LMA website.
Kees van der Klugt, Director of Legal and Compliance at the LMA, says “We have been working with a highly experienced team on the guidance and on a series of seminars for members of the LMA and IUA. The detailed guide gives a full analysis of the changes brought about by the Act and some very practical points and examples which should be taken on board before the new regime comes into effect.”
Kees adds that the LMA and IUA have shared the main guide at the drafting stage with LIIBA, BIBA and AIRMIC. "We and the IUA are talking to our counterpart associations on what further work we can do to assist a smooth transition to the new regime and in terms of developing model wordings and, possibly, contract templates for use after 12 August 2016. Our members will be fully involved in the further work."
Chris Jones, Director of Market Services at the IUA, said: "There has been strong interest from member companies in attending seminars on the new Insurance Act. The legislation represents a fundamental change for some day to day operations and companies are keen to ensure they are well equipped to meet their obligations."
The guide was prepared by Harry Wright of barristers' chambers 7 King's Bench Walk in association with law firms Clyde & Co, Cooley LLP and Ince &Co, and with input of LMA and IUA member firms. The guide supplements the seminar programme currently being run for Lloyd's syndicates and London insurers and will be followed by a shorter ‘quick-reference guide’, due for release in July, on points to consider in the underwriting process and in preparation of insurance contract wordings.
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Notes to Editors
The Insurance Act 2015 makes substantial changes to insurance and reinsurance contract law in the UK, including amendments to the Marine Insurance Act 1906. It will therefore affect all contracts where English law is the applicable law. The Act became law in February 2015 and comes into effect on 12 August 2016 after an 18 month transition period.
For information, this is an extract from the LMA/IUA joint press release dated 6 February 2015:
Kees van der Klugt, Director of Legal and Compliance at the LMA, commented: “In our evidence to the House of Lords committee, which carried out the substantive scrutiny of the proposed legislation, the LMA made clear its support for the core reforms: proportionate remedies for pre-contractual non disclosure; the banning of “basis clauses”; breach of warranty having the effect of suspending rather than discharging cover; and forfeiture being the remedy for fraudulent claims.
[He continued] “We were less supportive of some other changes which did not appear central to the reform programme or to be problem areas in existing law. All changes in the law will to some extent produce uncertainty, as the House of Lords committee acknowledged, and the purpose of our guidance will be to identify these areas so that appropriate action can be taken in underwriting and drafting contracts.”
About the Lloyd’s Market Association (LMA)
Formed in 2001 and located in the heart of the Lloyd’s Building in the City of London, the Lloyd's Market Association represents the interests of the Lloyd’s underwriting community. All underwriting businesses at Lloyd’s are members, together managing gross premium income of around £26 billion per annum.
For further information please contact:
James Milne, Communications Manager
Lloyd’s Market Association
T 0207 327 8405