UK - Impact on ratings post-Insurance Act will remain neutral
Wednesday, 08 17 2016, Category: Insurance and Reinsurance, Country: United Kingdom
The implementation of the Insurance Act 2015 will not affect the ratings of UK insurers, according to S&P Global Ratings.
The Act, which affects every single commercial policy and is considered to be the biggest change in insurance law in over 100 years, seeks to address an imbalance between policyholder and insurer, which some commentators claim previously favoured insurers.
S&P believes insurers will see a minimal impact on their overall financial risk profiles and credit risk due to the relatively low implementation costs of the Act, as well as the fact a similar law was implemented for personal lines – the Consumer Insurance (Disclosure and Representations) Act 2012 – in 2013.
Source: Intelligent Insurer