The
contract certainty project began in December 2004
with an FSA challenge to the UK insurance industry
to end the "deal now detail later culture".
The industry took steps to improve way it develops
and agrees contracts ensuring that the Insured
has greater certainty over what it has bought
and the Insurer greater certainty over what it
has committed to.
FSA recognised
the success of this work in its announcement on
January 24th 2007.
The Contract Certainty Steering Committee made
a further announcement in January 2008 confirming
continued progress.
Contract
certainty has brought operational improvements
across the industry, reducing risk and improving
service. Contract certainty applies to general
insurance contracts either entered into by an
FSA-regulated insurer, or effected through an
FSA-regulated intermediary. Contract certainty
is achieved by the complete and final agreement
of all terms between the insured and insurer at
the time that they enter into the contract, with
contract documentation provided promptly thereafter.
The links
on the right hand side provide access to the guidance
published to assist the industry in achieving
contract certainty
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