BIBA responds to Law Commissions’ latest consultation on draft clauses for Insurance Contract Law

10th March 2014

The British Insurance Brokers’ Association (BIBA) has welcomed the Law Commissions’ latest joint consultation on Business Insurance Contract Law and will work with them to reduce any potential negative impact on insurance brokers. 

In its response to the consultation on the draft clauses of the Insurance Contract Law Bill, BIBA has sought clarification around the brokers role in the duty of fair presentation of the risk.

BIBA is seeking to ensure that no additional responsibilities fall upon the broker in regard to commercial customers’ disclosure requirements that could result in professional indemnity issues. The consultation and BIBA’s response specifically looks at disclosure and representations, insurers remedies for fraudulent claims, damages for late payments and good faith.

Steve Foulsham, BIBA’s Head of Technical Services, said: “We have been working closely with the Law Commission throughout the whole process of contract law reform and we are anxious to support the Bill to ensure that it makes its passage through the parliamentary process as quickly as possible. We are confident that that the clarification that we have sought will be resolved positively. We now await with interest, the next stage which will involve consultation on the clauses dealing with warranties and contracting out”.

David Hertzell, Law Commissioner, commented: “I appreciate the time and effort BIBA has made to all of the Law Commission consultations and I will be considering BIBA’s comments with parliamentary counsel as the draft Bill is finalised”.



Notes to editors

  1. Click here for full consultation response.


  2. For further information please contact:

    BIBA press office:
    Leighann Forsyth, Head of Communications
    020 7397 0223


  3. About British Insurance Brokers' Association

The British Insurance Brokers' Association (BIBA) is the UK's leading general insurance intermediary organisation representing the interests of insurance brokers, intermediaries and their customers.

BIBA membership includes just under 2,000 regulated firms having merged with the Institute of Insurance Brokers (IIB) in November 2011.

General insurance brokers contribute 1% of GDP to the UK economy and BIBA brokers employ more than 100,000 staff.

53% of all general insurance is sold by an insurance broker and they arrange 81% of all commercial insurance business.

Insurance brokers put the client’s interests first, providing advice, access to suitable insurance protection and risk management.

BIBA helps more than 400,000 people a year to access insurance protection through it’s Find a Broker service, both online and via the telephone.

BIBA is the voice of the industry advising members, the regulators, consumer bodies and other stakeholders on key insurance issues.   BIBA provides unique schemes and facilities, technical advice, guidance on regulation and business support and is helping to raise, and maintain, industry standards.