Commercial Insurance for SMEs – a premature FOS extension

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

Late payment, supplier responsibilities and contractual terms

Insurance law reform has been a long process with Law Commission consultations starting in the mid “noughties”, through CIDRA in 2012, the Insurance Act in early 2015 and the long haul of implementation to commencement already now more than 100 days ago.  So it is all too easy to relax, having passed the finishing line but equally important to remember that full implementation will take place when the “late payment” clause comes in to effect next year.

Continue reading