Press release -
ALLIANZ COMMERCIAL TO ADOPT INSURANCE ACT REFORMS WITH IMMEDIATE EFFECT
The Insurance Act 2015 reform is one of the largest overhauls in the insurance market for over a century. Allianz Commercial is pleased to announce that it will be going above and beyond the actions required and intends to adopt the reforms with immediate effect.
Although insurers have been given the option to opt out or embrace these changes by August 2016, Allianz has made a decision to better serve its customers by implementing them now. All customers* will benefit from the following changes immediately:
- warranty free policies
- conditions precedent will only be invoked if a breach has contributed to the loss
- basis clause removed from policies.
In addition, Allianz has issued a market statement which sets out clear guidelines explaining the difference between innocent, deliberate or reckless non-disclosure and the remedies available to them. Although the Act does not come into force until August 2016, Allianz Commercial will handle claims as if the Act already applies, giving customers a truly transparent and fair service. The insurer has started changing policy documentation to reflect the reforms.
Neil Clutterbuck, director underwriting and technical, Allianz Commercial, commented: “We are pleased to announce that we will be embracing the Insurance Act reforms immediately. These changes will bring the market into the 21st century by rebalancing rights and remedies when things go wrong.
“It will also provide the opportunity for insurers who already demonstrate best practice in these areas to stand out from the competition. For example at Allianz, we already dedicate significant time and investment to the underwriting process and adequate risk assessment prior to inception.”
He added: “These changes are an important step towards improving industry practice and delivering greater transparency and a fairer outcome for policyholders."
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1. Allianz Insurance is one of the largest general insurers in the UK and part of the Allianz SE Group, the largest property and casualty insurer worldwide. Around 83 million private and corporate customers rely on Allianz's knowledge, global reach, capital strength and solidity to help them make the most of financial opportunities and to avoid and safeguard themselves against risks.
In 2013, around 148,000 employees in over 70 countries achieved total revenue of 110.8 billion euros.
2. * Where Allianz participates in a co-insurance arrangement, Financial Lines (Professional Indemnity or Directors & Officers cover) or underwrite using a non-Allianz branded policy it will seek to apply the spirit of the Act, until policy documentation can be amended.
