Proposals promise shake-up of broking laws

Stephen Netherway and Jonathan Thorpe of CMS Cameron McKenna focus on the changes that face the broking sector in the third part of a series of articles analysing the Law Commission’s proposals for insurance law reform

In their Consultation Paper, the Law Commission and Scottish Law Commission have recommended sweeping reform of broadly three areas of insurance law. In previous issues of IR&A , we considered the proposals for (1) the law on pre-contractual non-disclosure and misrepresentation; and (2) warranties. The third area the Commissions have considered is the law relating to the role of intermediaries, such as brokers, during pre-contractual negotiations. In this article, this third set of proposals is summarised. We also consider some possible impacts the suggested reforms could have on brokers’ exposure to E&O claims.