Contract Certainty Code of Practice launched

The latest phase in the UK’s drive to embed contract certainty into the day-to-day processes of the insurance industry has been completed with the publication of a market-wide code of practice.

The Contract Certainty Steering Committee (CCSC) has today unveiled a code of practice designed to ensure policies continue to be fully agreed prior to coverage becoming active.

The code brings together all contract certainty guidance issued over the last two years and is the first ever from a UK market body to cover both the subscription and non-subscription insurance markets.

The FSA has welcomed the code of practice which has been endorsed by all the UK’s leading insurance industry bodies, including the Association of British Insurers (ABI); the British Insurance Brokers’ Association (BIBA) and Lloyd’s.

““The UK will benefit enormously from further modernisation of the insurance industry and contract certainty is an important part of that process. Ultimately, it is our customers that reap the benefits, and it therefore must remain a key priority.”

Dane Douetil, chairman of CCSC and the London Market Reform Group

Dane Douetil, chairman of CCSC and the London Market Reform Group, said: “Following the industry’s success in meeting the FSA’s challenge to materially achieve contract certainty by the end of 2006, the market continues to make excellent progress and is successfully embedding contract certainty in its day-to-day operations. The code marks the next phase of that work. Developed following industry-wide consultation, it builds on the lessons of the last two years, creating an easy-to-follow guide to best practice.

“The UK will benefit enormously from further modernisation of the insurance industry and contract certainty is an important part of that process. Ultimately, it is our customers that reap the benefits, and it therefore must remain a key priority.”

A copy of the Contract Certainty Code of Practice, which modifies the definition of contract certainty, outlines a series of contract certainty principles, and requires firms to demonstrate performance.

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