The new UK Insurance Act will come into effect from 12 August.
The law will apply to any new insurance contract governed by UK law, whatever the location of the buyer or the risk, so it will affect many non-UK companies who use the London market. This will not change whatever happens to the UK’s relationship with the EU.
According to FERMA President, Jo Willaert, there is an increasing awareness of the new law by European companies which have interests in the UK or place insurance in the London market. “We could see that, for example, in the successful exchange that BELRIM organised in Brussels about the law. There are certainly companies who are not fully aware about the implications, but the number of them is decreasing rapidly.”
FERMA’s advice to risk managers:
Make sure that you are aware of the implications of the UK Insurance Act for your programmes, even if you do not have interests in the UK. If you work with brokers, discuss the issues with them and ensure that they deal with any necessary changes to your programmes on renewal.
The document issued in 2015 by FERMA and Mactavish can be helpful: Changes in UK Insurance Law – An Introduction for European Businesses at http://www.mactavishgroup.com/services/research/changes-in-uk-insurance-law-an-introduction-for-european-businesses/