Retail sector poised for 2016 disclosure changes, Aon UK update shows

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Aon, a leading global provider of risk management and human resource consulting and outsourcing, has published its latest market update for the retail and wholesale industry.

The Aon UK retail update 2016 reviews insurance market conditions for buyers and risk managers, and includes industry-specific pricing data from Aon’s Global Risk Intelligence Platform (Aon GRIP).

Key data in the 2016 report include an analysis of premium changes from 2014-2015, with buyers with good claims histories enjoying stable prices in core areas such as property, motor, public and employers’ liability.

Analyzing a wide range of potential risk factors facing the industry, the report assesses insurer sentiment towards retailers and provides advice on how companies can better present their risk when renewing insurance programmes as well as external influences which could impact their propensity to incur claims.

The report also identifies new risks and exposures facing the industry, key amongst which is the implementation of the Insurance Act.

“This new legislation replaces a 100 year old statute and imposes a range of new duties on buyers and sellers of insurance,” said Guy Malyon, head of UK broking at Aon Risk Services. “With the new Insurance Act coming into force in August 2016, this is a very timely report for buyers of insurance and risk managers within the industry. The Act aims to rebalance fairness for both parties of an insurance contract, removing the current draconian rules around disclosure and representation non-compliance, in many cases. However these are being replaced by a new duty to ‘make a fair presentation of your risk’, which means companies should work closely with their brokers to ensure they are complying with the law in this regard.”