Consumer Insurance Act 2012 could result in increased number of claims to be paid

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The implications of the Consumer Insurance (Disclosure and Representation) Act 2012 could be massive for brokers and insurers when the Act comes into effect next year, lawyers have warned.

Insurance Times spoke to two legal experts about the Act and the potential stem of complaints brokers could face from insurers as a result of the increased number of claims expected to be paid under the new rules which will be implemented in March 2013.

CMS Cameron McKenna Insurance Sector Group head Stephen Netherway warned that the Consumer Insurance Act could increase the risk burden on brokers as well as damage relationships with insurers when it comes into force.

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