"The most significant reform of UK insurance law in over a century"

The Insurance Act 2015 has shifted existing principles of insurance law as well as the balance of risk between insurers and policyholders. Ffion Flockhart and Charlie Weston-Simons outline what the Act means for the financial services sector and provide practical tips for compliance and risk staff.

In August 2016 the Insurance Act 2015 came into force, marking the most significant reform of UK insurance law in over a century. The motivation for the Act was a perception that the existing regime for business insurance law had become outdated and, in particular, that it no longer provided a fair balance between insurers and policyholders. As a result, the Act aims to re-balance the insurance relationship by, among other matters, replacing the existing duty of disclosure with a duty of fair presentation, implementing a scheme of proportionate remedies for breach of the new duty and mitigating the consequences of a breach of warranty.