New CCSC Code of Practice
by Gill Montia
Story link: New CCSC Code of Practice
A market-wide code of practice has been issued by the Contract Certainty Steering Committee (CCSC), with the aim of helping UK companies incorporate contract certainty into their sales processes. The code, which includes all contract certainty guidance issued over the last two years, is designed to ensure that policies are fully agreed before coverage becomes active. As such, it is the first code of practice issued in by a UK insurance body that covers both the subscription and non-subscription insurance markets. It has the approval of the FSA and has been endorsed by all the UK’s leading insurance industry bodies, including the Association of British Insurers, the British Insurance Brokers’ Association and Lloyd’s.
The code of practice modifies the definition of contract certainty, details a series of contract certainty principles, and expects insurance companies to be able to demonstrate compliance. It has been developed as part of the response to the FSA’s challenge to achieve contract certainty by the end of 2006 and is based upon consultations which have taken place across the entire insurance sector. Its introduction is expected to be of considerable benefit the UK insurance sector.