Eighteen months since the Insurance Act 2015 came into force the FCA is presently considering whether (and how) more SMEs should fall within the jurisdiction of the Financial Ombudsman Service. At present only smaller SMEs (“micro- businesses”) with €2m turnover and fewer than 10 staff can seek a FOS adjudication on disputed insurance issues. The FCA Consultation, concluding on 22 April, is seeking views on whether eligibility should be extended to small businesses with annual turnover of less than £6.5m and fewer than 50 employees. It is estimated that such an extension would provide an additional 160,000 businesses with access to the Ombudsman. In assessing how to respond to this consultation it is useful to consider the impact of the Insurance Act since the commencement on 12 August 2016. Continue reading
TODAY marks the anniversary of the enactment of the Insurance Act 2015 and leaves exactly six months before the first policy is incepted to which the new law will apply. On that date substantive parts of the century old Marine Insurance Act 1906 will be amended, varied or in effect repealed and to add to the “mix” we anticipate the “late payment” clause (see previous blogs on the Enterprise Bill) will be enacted but not yet “in force”.