Designing and Driving Best-In-Class Buying Practices – Mactavish set to launch Seven-Point Protocol at Airmic 2015 to guide business compliance with Insurance Act 2015
Hot on the heels of its introductory guide to the Insurance Act 2015, co-authored with the British Insurance Brokers’ Association, Mactavish is gearing to up launch a further guidance note at Airmic, the largest insurance buyers’ conference in the UK, held in Liverpool next week.
Attention on the Insurance Act 2015 has to date focused much on the ramifications for brokers and insurers, as the Act broadly improves the position of policyholders in many areas. However, as Mactavish has pointed out in several opinion pieces this year, it should not be forgotten that the Act also represents a significant challenge for policyholder businesses.
As the debate in the insurance industry shifts into considering and working through the operational and cultural impact of the Act, Mactavish’s timely Seven Point Protocol sets out what insurance buyers need to do.
The key thrust of the legislation is to professionalise insurance placement. The new more specific duty of fair presentation, replacing the existing duty of disclosure, will require Boards of businesses to evidence a more thorough analysis of their risk, and sets a standard most businesses would currently fail to meet.
As the Act rebalances the underlying legal framework, courts are expected to no longer interpret the law in favour of insureds. Insurers, hitherto often not resorting to the letter of insurance contracts, are also expected to be more stringent in their application of the law.
Clearly, this all creates a new challenging environment. Insurance buyers will need to contest the assumptions that underpin their role and change their attitudes towards the placement process, their interaction with brokers and insurers, and the management of claims post-loss, if they want to thrive in this new world.
Mactavish’s protocol gives insurance buyers the tools to do this. It explains practical requirements which are directly specified by the Act, and wider priorities for overseeing best-in-class insurance placement as the Act goes live.
This Mactavish protocol recognises that too few businesses purchase insurance with an awareness of how and why claims are disputed. Mactavish’s guidance is therefore structured around the key seeds of policy failure, which are often sown far away from the final claims dispute.
Commenting on the forthcoming launch of the Mactavish Protocol, Mactavish CEO, Bruce Hepburn, advised: “Too often Boards treat insurance as a commodity when in fact it actually operates as a highly nuanced contract and capital facility. The new legal framework coming into place in 2016 will see further obligations placed on insurance buyers and their Boards which in turn will herald an important era of insurance placement professionalisation. This new guidance note from Mactavish has been designed expressly to help businesses place policy reliability far higher up their list of priorities and ensure they are in a position to benefit from the Insurance Act”.
The Seven-Point Mactavish Protocol for complying with the Act ‘Designing and Driving Best-In-Class Buying Practices’ has been specifically compiled for insurance buyers. By releasing the guidance note next week at Airmic – the most high profile insurance buyers’ event of the year – Mactavish wants to put it clearly on the radar of all insurance buyers.
The new guidance note will be available from the Mactavish stand (Stand 102) at the Airmic conference next week and will ultimately be downloadable from the Mactavish website. The Guide will also be available in hard copy form at a co-hosted Mactavish/PwC Seminar being held at Airmic on Wednesday 17th June focused on ‘identifying and managing business critical insurances’.
Follow Mactavish on Twitter at @MactavishGroup for all latest updates from Mactavish at Airmic.
For further information and media interview requests for an interview with Mactavish CEO Bruce Hepburn and former Law Commissioner and now insurance governance adviser at Mactavish, David Hertzell, please contact:
Bridget Jennings: 07850 822820 (the Media Team)
Tom Miskin, Senior Analyst, Mactavish: 0208 834 1621
The 2015 Airmic Conference takes place between 15th and 17th June in Liverpool at The ACC. The 2015 theme is ‘Raising the Profile of Risk’.
The Mactavish Stand is 102.