6 October 2015

The Federation of European Risk Management Associations (FERMA) today publishes a guide for risk managers across Europe on the implications of new legislation that will change the legal framework for commercial insurance in the UK. Produced jointly with insurance governance specialists Mactavish, Changes in UK Insurance Law – An Introduction for European Businesseswarns that the UK’s Insurance Act 2015 will affect buyers across Europe, because of the large amount of international insurance and reinsurance business placed in the London insurance market.


FERMA president Julia Graham said: “The Act will bring significant additional direct and indirect benefits to businesses that arrange insurance in the UK. However, to get these benefits, European risk managers will need to understand the substance of the reform and adapt their practices in response.”


The law, which comes into force next year, is the most important new law affecting commercial insurance in the UK for more than a century. It provides buyers with valuable extra protection, meaning that insurers will no longer be able to use technicalities or trivial breaches of contract to turn down claims on policies purchased in good faith. At the same time, it places an enhanced burden on buyers to present underwriters with accurate information that provides a fair and detailed picture of their organisations’ risk profile.

The guide provides an overview of the legislation and its implications for risk managers, as well as a check-list of things for them to consider.


David Hertzell, who as former Law Commissioner was responsible for overseeing the new legislation and is now with Mactavish, says the Act will encourage greater professionalism in the market. Those buyers who rise to the challenge stand to derive significant benefits in terms of better designed policies and greater certainty that large claims will be paid, he says.


According to Mactavish CEO Bruce Hepburn: “By compelling businesses to understand their risk in more detail and shifting insurers’ focus towards clarifying and defining coverage, the Act is expected to drive increased innovation in bespoke coverage design.  To benefit, however, buyers and their brokers will have to be alert to the implications of the new law. This guide has been written to help them do so.”


Changes in UK Insurance Law – An Introduction for European Businesses

is available from:

Mactavish website at:




Press contacts:

Lee Coppack, FERMA Media Coordinator    

+44 7843 089904 (4-11 October) /+44 208 318 0330


Tom Miskin, Senior Analyst, Mactavish –,

+44 208 834 1621




The Federation of European Risk Management Associations (FERMA) brings together 22 national risk management associations in 20 European countries. FERMA has 4300 individual members representing a wide range of business sectors from major industrial and commercial companies to financial institutions and local government bodies. These members play a crucial role for their organisations with respect to the management and treatment of complex risks and insurance issues.


Member associations are from the following countries: Belgium (BELRIM), Czech Republic (ASPAR CZ), Denmark (DARIM), Finland (FinnRima), France (AMRAE), Germany (DVS/BfV), Italy (ANRA), Luxembourg (ALRiM), Malta (MARM), Netherlands (NARIM), Norway (NORIMA), Poland (POLRISK), Portugal (APOGERIS), Russia (RusRisk), Slovenia (Sl.RISK), Spain (AGERS and IGREA), Sweden (SWERMA), Switzerland (SIRM), Turkey (ERMA) and United Kingdom (Airmic). 


About Mactavish

Mactavish specialises in the analysis of commercial risk, coverage analysis, insurance policy reliability, management of legal drafting, disclosure, placement procedures and conduct, and insurance governance standards. It contributed heavily to the law reform process for the Insurance Act 2015.