Commercial Risk Europe has today reported extensively on the negotiations underway over amendments to the Enterprise Bill, which will impact on the ability of businesses to claims damages if insurers unreasonably delay claims.
Mactavish and Airmic, the association representing businesses buying insurance in the UK, are leading the negotiations with the Lloyd’s Market Association (LMA) and the International Underwriting Association (IUA), which represent Lloyd’s and the wider London market. The LMA and IUA are reconsidering their amendment to the Enterprise bill, following concerted pressure from Mactavish and Airmic on behalf of policyholders. The amendment would have limited the positive change to rules around late payment of insurance claims that were originally included in the Bill.
As Commercial Risk Europe reports, opposition to the LMA / IUA amendment was marshalled by Mactavish and a revised amendment, more favourable for businesses buying insurance, is currently being drafted by Mactavish’s legal counsel. It is hoped that this will break the deadlock and the representatives of the London market have already signalled that they are willing to negotiate.
David Gittings, the LMA’s CEO, speaking on behalf of the IUA and the London company market to Commercial Risk Europe commented in the article that they “are absolutely sympathetic to where Airmic and Mactavish are coming from”. “If Airmic or Mactavish can come up with another solution and formulation for us to look at then obviously we are open to listen and would like to find a solution that is an agreement between all parties. Ideally we would work through this together to find a solution that is amenable to all concerned. By consulting all the stakeholders together we hope we can come up with an answer that is well informed and balanced” Mr Gettings concluded.
Bruce Hepburn, Mactavish’s CEO, is quoted extensively in the article, giving an update on progress and setting out why the issue is a critical crossroads for the insurance industry in the UK. “We as a group are on the cusp of doing something that will either damage London’s reputation with European and worldwide policyholders or will actively enhance it. We are on the cusp of doing something that is hugely appealing to customers or massively unattractive to customers. That is the choice. I don’t know which way it will go,” Mr Hepburn commented in the piece.