12 August 2003

Insurance good practice statement welcomed

Enterprise Minister, Ian Pearson has welcomed the announcement that liability insurers will provide at least 21 days notice of their renewal terms under a new statement of good practice.

Announced by the Association of British Insurers (ABI) and the British Insurance Brokers Association (BIBA), the decision is likely to benefit businesses who have, in the past, been left with insufficient time to seek alternative quotes, specialist advice or to make budgetary provision.

The Minister said: “This move by the insurance industry is a welcome step and I hope it will go some way to helping businesses which have experienced difficulties during the last year.

"Through my meetings with industry representatives across Northern Ireland I am very aware of the difficulties which have been caused by late renewals which leave businesses with insufficient time to seek alternative provisions."

Among the main points in the statement of good practice are:

The insurer will notify the broker of information required for renewal not less than 40 calendar days prior to renewal date
The broker will provide the required information to the insurer not less than 30 calendar days prior to renewal
Information about claims should be provided in the format recommended by ABI and BIBA
The insurer will notify the broker of the renewal terms not less than 21 calendar days prior to renewal and the broker will pass the terms to the policy holder as quickly as possible
Where requested, the insurer will provide acknowledgement of cover to the broker not more than 14 calendar days after the renewal date
If the insurer does not intend to renew a risk the broker will be notified not less than 21 calendar days prior to renewal
If the insurer does not intend to renew a risk the broker will be notified not less than 21 calendar days prior to renewal

Both Associations are recommending that their members adhere to the new standards which come into effect on 1 November 2003.

It is hoped that this statement will reassure customers that they will have time to budget for proposed levels of premiums, or to shop around if they wish to do so.

(MB)