The Insurance Act 2015

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A new legal framework affecting every business insurance policy placed, renewed or amended after the 12th August 2016.

The Insurance Act 2015


This is the biggest modernisation of Insurance Law since the Marine Insurance Act of 1906.

It aims to make recovery from insurers simpler and fairer in the event of a claim.

Fair Representation

However, these benefits are dependent on the customer making a ‘fair presentation of risk’.

The customer has a duty of ‘fair representation’ and the act specifies what the customer must do for a presentation to count as fair.

The existing obligations of good faith and ensuring accuracy of material information both remain.


The customer must make adequate enquiries within their business to identify and verify information relevant to the risk(s) concerned.

The must include all relevant knowledge of the ‘senior management’ of the business and those involved in buying 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.

This addresses the clarity of presentation and how able insurers are to assess the risk.

“Data Dumping! of large amounts of information about risk(s) is/are unacceptable.

It is now an additional requirement to adequately highlight unusual activities and/or known areas of concern that could affect the risk.


From the 12th August 2016, businesses will be required to ensure that their underlying procedures for buying insurance are compliant with the Act.

6 Key steps can help achieve this goal:

2016-12-19T22:26:12+00:00 December 19th, 2016|Industry News|
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