Business Guide to the new Insurance Act (in force from 12 August 2016)

Business Guide to the new Insurance Act (in force from 12 August 2016)


Author: Paul Eccles

Applies to: UK wide

Billed as the most significant 'makeover' in insurance law in over a century, the Insurance Act 2015 will change the face of how business runs its insurance portfolio.



Our Insurance experts have been closely studying commentary and analysis from leading insurers alike on the challenges, hurdles and benefits to business of what has been billed as the most significant insurance "makeover" in more than a century. To find out more, download our free Business Guide to the new Insurance Act.

Shoosmiths takes a practical look at the Insurance Act 2015 from a business perspective. We have prepared a short guide (see download panel on the right of this page), setting out our take on the challenges/hurdles you will face and to how to make the best of the new regime.

The main purpose

Although it is fair to say that the Act aims to place insurance law in a position that is more favourable to an insured, it is still critically important that its implications are understood by all commercial entities purchasing insurance cover in their day to day business lives.

In the attached guide, we cover the main aspects of that such as the new "Duty of Fair Presentation" which requires much greater clarity in relation to the information you must provide to an insurer when renewing or entering into a new insurance contract.

The landscape between insurers and insureds ought to be fairer and it is true to say that this is the main aim of the new legislation. There is a wide range of knowledge and information currently available on the provisions of the new Act, but there still may be some misconception that there is no need to take action before implementation date, namely 12 August 2016. In our view, the repercussions of failing to address the practicalities of the requirements and duties of the new regime could be significant.

Our Guide

An urgent review of your own internal processes when looking at compliance with the new Act, ought to be a priority if you have not already prioritised this and starting well ahead of your next insurance renewal is going to be fundamental to taking advantage of the Act's benefits now.

In our view, the Insurance Act 2015 demands board level attention across all businesses.

We hope you find our Guide useful. In the coming weeks, we will look in more detail at the contents of the Guide, particularly in relation to:-

  • The duty of fair presentation (gathering and assimilating knowledge within your business).
  • The reasonable search for information and what your business needs to know.
  • Presenting with clarity, sufficient and accessible information for insurers.
  • The insurer's perspective.
  • Key new 'terms' and pitfalls.
  • Practical hints and tips on compliance.

Final Thought

It is, of course, likely that there will be a period of uncertainty as with implementation of any new legislation. What we can be certain about is the appetite to addressing the historic imbalance between the competing interests of policyholders and insurers.

Learn more about the Insurance Act 2015 with our downloadable PDF and articles
Part 1 - Duty of Presentation Part 2 - Duty of Presentation Part 3 - Information is King
Part 4 - Insurer Knowledge Part 5 (Coming Soon) Part 6 (Coming Soon)
Insurance Act 2015 Overview


This document is for informational purposes only and does not constitute legal advice. It is recommended that specific professional advice is sought before acting on any of the information given.

About the Author

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Paul Eccles

Head of Commercial Insurance

03700 86 8741

Paul is head of the insurance team at Shoosmiths which sits within the litigation and disputes practice. He specialises in all aspects of insurance-based litigation. He has a particular interest in policy cover disputes between insurers/insured, including breach of warranty, misrepresentation/mistake, non-disclosure and fraudulent claims acting for both the insured and insurers.

He has a broad depth of experience in most classes of insurance business to include commercial risk, professional indemnity, employers' and public liability personal injury claims and product liability for some major household brands.

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