Brokers stand to gain a double benefit from the new Enterprise Act, according to BIBA. The bill, which this week received Royal Assent, will introduce an addendum to the Insurance Act 2015, allowing businesses to bring actions for damages for financial losses suffered as a result of late insurance claim payments.
It also seems likely the act will ease some of the regulatory burdens the industry faces, with the FCA set to be included in the Government’s £10bn continuation of the coalition’s ‘red tape challenge’. BIBA had lobbied Government for the changes to be made, and welcomed the act as ‘good for the insurance sector and good for business’.
BIBA’s Pam Quinn told Insurance Business
: “It’s good news for the insurance industry because it potentially improves the industry’s reputation. If there’s a remedy in place it means insurers will seek to ensure they’re settling all of their claims within a reasonable time. It’s good news for the industry as a whole in terms of reputation, therefore it’s good news for brokers – it also gives brokers the confidence to say to their customers ‘we’re pretty sure if there is a loss, it’s going to be paid fairly and promptly’ – which is very good news for businesses.”
Quinn believes deregulation will bring further benefits for brokers and the wider industry – assuming the FCA is included in the act’s provisions.
“The Government is talking about putting in place measures to make sure that regulators are slightly more accountable. They want to make sure regulators think before they impose additional burdens on the enterprises that they regulate, and get feedback from businesses to understand how what they do impacts those businesses. We’re waiting for confirmation via the statutory instrument that the FCA is included in that list of regulators.”