Government to overhaul consumer insurance law

Government plan changes for consumer insurance law

Today the Government has introduced the Consumer Insurance (Disclosure and Representations) Bill, which aims to radically change the relationship between consumers and insurance providers.

The Bill will give certainty to consumers and insurers by shifting the emphasis away from a consumer’s duty to disclose all necessary information, to a requirement for insurers to ask particular questions and obtain specific information about their customers, before they issue an insurance policy.

Insurance law barely changed since 1906

The current law has changed little since 1906, and with additional layers of regulation, has become complex and confusing for consumers, and expensive for the industry to administer.

The changes within the Bill, and its shift in emphasis, will provide better protection for consumers, while reducing the cost to industry.

Mark Hoban, Financial Secretary to the Treasury said:

“The Government is committed to strengthening consumer protection in financial services and these reforms will help meet this commitment. They will provide a better deal for the consumer, while saving money for the industry and giving people the certainty they need when taking out insurance.

“We have worked hard to consult all of the interested parties in producing this Bill and as a result, it has received broad-based support, not only from consumers and legal groups, but from insurers and brokers as well.”

0saves
If you enjoyed this post, please consider leaving a comment or subscribing to the RSS feed to have future articles delivered to your feed reader.

Comments are closed.

Powered by WordPress