Author: premcoblog

Premier Commercial is a Coverholder at Lloyd's of London specialising in liability, property and motor insurance business.

IDD PUSHED BACK TO 01/10/1018

The EU Parliament has written to the Commission approving of the proposal to postpone the implementation of the new legislation which updates The Insurance Mediation Directive.

The Insurance Distribution Directive was previously due to be applied throughout the EU by 23 February this year.

The main areas covered by the new legislation are:

  • Professional, organisational and prudential in relation to PII and T&C requirements
  • Product oversight and governance – aka POG
  • Remuneration disclosure requirements
  • Conflicts of interest disclosure
  • Pre-contract disclosures
  • Customer demands and needs requirements
  • Complaints handling and out of court redress

So if you weren’t ready for next month you’ve a little more time to get there – PHEW!

AUTOMATED CARS – CRASH LIABILITY?

With fully automated cars anticipated to arrive by 2021, yes just 3 years away, who will be at fault when they start bumping into each other, or are we about to return to the world of ‘knock for knock?’    

Driverless car

The Automated and Electric Vehicles Bill will shortly be debated in the House of Commons for the second time as the UK prepares itself for the launch of the first Level 3 automated vehicle later this year. Level 5 automation represents full driverless capability (where the driver has no control) and it is creeping ever nearer.

The aim of the bill is to ensure that victims are compensated but insurers are already anticipating a real threat to current cost structures. Increased competition may come from manufacturers seeking to include servicing, maintenance, data management and insurance in a package – sounding the death knell for the conventional motor insurer.

Compulsory insurance is a given but will it be a strict liability environment, or will there be a need to prove negligence, can a machine be negligent? Will liability rest with the software if it fails to avoid a collision and what then if the owner / operator failed to download a critical update to the software?

Either way it looks like the end of the school run.

You can keep up to date with the bill here: https://www.parliament.uk/business/news/2017/october/automated-and-electric-vehicles-bill/