The Law Commission today proposed modernization of the law relating to misrepresentation, non-disclosure and breach of warranty by the insured, but the ABI is not convinced it will make a difference.
The consultation paper, published jointly by the Law Commission and the Scottish Law Commission is inviting comments on its proposals for reforms which “are intended to give potential policyholders confidence in insurance by ensuring that it meets their reasonable expectations while protecting the legitimate interests of insurers and not imposing undue costs or unnecessary restrictions.”
But, commenting on the consultation paper, Stephen Haddrill, the ABI’s Director General, was unenthusiastic.
“More law is unlikely to provide a better deal for customers, he said.
“The real challenge is for the industry and the FSA to make a success of principles-based regulation.
“We will scrutinise the Law Commission's proposals to ensure that they add real value to the regulatory system; are themselves principles-based, not prescriptive; and do not distract from the efforts already underway to modernise regulation.”
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