Further Proposals For Reform From The Law Commissions

The Law Commissions of England and Scotland have now published their long-awaited second consultation paper on proposed reform of the law relating to a business insured's duty of disclosure, as well as the law on insurance warranties.

We set out below the main proposals being advanced and their likely impact on insurers and policyholders.

1) The Business Insured's Duty of Disclosure

Many of the proposals set out in the consultation paper do not represent "new" law but, instead, seek to clarify the law of disclosure as it applies in a non-consumer context. The proposals apply to all business insurance, including reinsurance and the insurance of large risks. Rather than "protecting" business policyholders, the proposals are said to be intended to achieve "neutrality" between the parties.