Bill to overhaul consumer insurance law introduced
The Government yesterday introduced the Consumer Insurance (Disclosure and Representations) Bill, which aims to “radically change the relationship between consumers and insurance providers”.
The proposed legislation shifts 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 a policy.
The current law on disclosure has changed little since 1906 and ministers are concerned that additional layers of regulation have made it complex and confusing for consumers, and expensive for the industry to administer.
Financial Secretary to the Treasury, Mark Hoban, comments: “The Government is committed to strengthening consumer protection in financial services and these reforms will help meet this commitment.”.
He adds: “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.”
Category: Insurance News, Legal News
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