Willis Group deputy chief exec Steve Hearn stressed the act would create greater clarity around buying insurance
Renewals will need to be started earlier as more work will be required by brokers, insurers and clients when buying insurance, as a result of The Insurance Act 2015.
Speaking at the 2015 Airmic conference panel debate in Liverpool on the implications of the Insurance Act, BP head of insurance risk solutions Lesley Harding warned that one of the challenges would be an increase in client data reporting requirements.
She said: “They need to be advised of this by their brokers. There is going to be an increased responsibility on the client to understand and stress test the wording ahead of the policy.
“There is also a requirement on the insurer to go back to the client and confirm they have an understanding of that risk.”
Willis Group deputy chief executive Steve Hearn said each party involved in the transaction would be required to do more work under the legal changes.
But he added that the act would bring improvements and greater clarity to the purchase of insurance.
Hearn said: “We are all working furiously towards it. It will take longer to get the work done. The renewal process will need to start earlier as there is a greater requirement of representation on all parties.
”The Marine Insurance Act created significant ambiguity around whether the fundamental law of our land would come into play and gave insurers certain rights in terms of reserving their position. There will be some implications but we need to be mindful of the subjective that this is an improvement to the situation.”