Insurance Act 2015

Insurance Act 2015

On the 12th August 2016, the government have released a more modernised Insurance Act 2015.  This will replaces the previous insurance act.  It was decided that the previous Insurance Act was not fit for purpose when compared against new modern standard practices.  Further details and explanatory notes on the Insurance Act 2015 can be found here.

In brief the Insurance Act 2015 now applies to all non-consumer insurance contracts in the UK, including group risk insurance.  The impact is minimal and you won’t see much change in how group risk works, ultimately it provides a very important reminder of the obligations of each employer who has or looking to have a group risk scheme.

The new act requires employers to insure they have informed the provider who the contract is that every material fact that is known by them, their senior management or anyone that is responsible for insurance within their organisation has been disclosed.

The definition of a material fact is a fact that would be to a reasonable person germane to the decision to be made as distinguished from an insignificant, trivial or unimportant detail. In other words, it is a fact which expression (concealment) would reasonably result in a different decision

Insurers may initially caveat their ‘items’ (A brief example: ‘Items’ may make reference to – Travel arrangements, Absentees, Subsidiary companies, Trusts) regarding material facts on quotations or application forms which needs reviewing and signing before the cover can commence.  Other providers will have different procedures and assess a risk based on facts they deem important before they look to produce terms.  The most important point is that employers must disclose all relevant information, big or small accurately and completely.

Here at Health Matters we have for many years worked alongside employers to maintain that their schemes are compliant alongside current/new legislation and they are aware in every event the implications of not disclosing correct information.


If you would like to discuss your Group Risk Insurance in more detail and how the Insurance Act 2015 may impact your schemes moving forward please contact one of the sales team directly on 0800 988 085 or email me directly at


​Emma Clay

02476 516 098