Insurance Act 2015
The committee discussed some insurers ‘early’ adoption of the Act and the view was that there were a number of inconsistencies in insurers approach and it was hoped that insurers and brokers would work together to provide some clarity when the Act comes into force.
Loan Market Agreements
The Loan Market Association (LMA) were looking to produce a standard broker letter which is a significant burden on insurance brokers – currently finance institutions issue their letter at the last minute, cover needs to be agreed with insurers and very often the letter is in a different formats.
It was agreed that a sub-committee would look to meet with the British Bankers Association and the British Property Federation.
BIBA was looking to re-engage with the ABI to ensure the standard format remains fit for purpose and also look to engage with the Managing General Agents Association (MGAA).
ABI/BIBA Vulnerable Customer Code
BIBA and the ABI were working together to produce a code. BIBA would also ensure that a brokerASSESS module was available for staff training on the code.
Index-Linking of Sums Insured
The approach by insurers varies, but coupled with the rise in IPT resulted in a 9%-10% increase in property premiums.
Terrorism Insurance on Household
In response to a member query the committee view was that this was a standard exclusion, other than some high-net worth policies, and the Government would be the compensator. There is also a commercial solution available in the market.
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