The CBI has welcomed the insurance industry's commitment to giving firms at least 21 days notice of renewal and changes to their premiums.
CBI Deputy Director-General John Cridland said: "Many businesses, particularly small firms, have struggled with steeply rising premiums in the past 12 months. This has been exacerbated when they have only been given a few days notice to shop around or take action to reduce the new premium.
"This new code of practice is a pragmatic response from the ABI the BIBA (British Insurers Broker's Association) and averts the need for legislation.
Cridland added: "Although the code alone will not alleviate the issue of high costs, it is a step in the right direction and could be the start of a step change in service standards that business wants."
