At this years' AIRMIC conference in Harrogate, we carried out a survey to determine the risk communities highest concern at the moment. Unsurprisingly, the impact of the Insurance Act came out on top with 31% of those who surveyed.
Also Risk Managers were concerned with renewal data collection, for which the insurance act will have a significant impact, including data dumping. Both these concerns also link with a general concern over accuracy and reliability of data.
In the past, the main challenge was locating and collecting the information required to meet Duty of Disclosure (DoD) requirements. Once collected, Risk Managers could simply dump the data en masse onto brokers and insurers and assume ‘job done’. Even when this went wrong, the broker could be held liable for not accurately presenting the risk to the insurer – there was no fall back on the Risk Manager
This is no longer the case – and the implications are very significant for Risk Managers. Under the new Duty of Fair Presentation (DoFP), Risk Managers must not only demonstrate that all efforts have been made to obtain all relevant and material information and evidence to an acceptable legal standard. This is all needed prior to presenting to the insurance market but also material risk information needs to be specifically highlighted within the presentation.
In this article written by Charles Van Oppen of TBIAS for AIRMIC, he outlines what it means to be 'clear and accessible' and for Risk Managers what this might mean in practice.
From speaking with AIRMIC community, it was obvious that one of their key concerns was the change from the Duty of Disclosure (DoD) to the Duty of Fair Presentation (DoFP). Additionally in AIRMIC news, thenew Chairman of AIRMIC, Clive Clark outlines how to prosper when the insurance act comes into force, claiming that the key to complying with the Insurance Act is clarity.
AIRMIC have created a report of their own which details in great length what Risk Managers can expect from the changes outlined in the Insurance Act.
