Insurance law “outdated” and “incoherent”

The Law Commission says there is a growing gulf between the law, the regulator and the Ombudsman

The extent of proposals to change insurance contract law has taken the industry by surprise and efforts are now underway to develop an appropriate response. In a new consultation paper published last month, the Law Commission, jointly with the Scottish Law Commission, said conduct of business rules developed by the Financial Services Authority (FSA) and the work of the Financial Ombudsman Service (FOS) are insufficient substitutes for the law and reform is “overdue”.