ACE Removes Basis of Contracts Clause from UK Insurance Policy Wordings

Thu Jun 27, 2013 9:00am EDT

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ACE Removes Basis of Contracts Clause from UK Insurance Policy Wordings

ACE Group today announced that it will remove the basis of contract clause from UK policy wordings issued by ACE European Group Limited for new and renewed insurance business following a full review that has included feedback from its clients and from the UK risk management association AIRMIC, of which ACE is an official partner.

David Robinson, Regional President UK & Ireland, ACE (Photo: Business Wire)

David Robinson, Regional President UK & Ireland, ACE (Photo: Business Wire)

Basis clauses are a long-standing historical mechanism that were designed to guarantee that all information provided to insurers, upon which underwriting decisions are made, are factually correct. Through constant dialogue with brokers and clients, ACE has become aware that clients are increasingly concerned that information which is incorrect, but provided in good faith, could invalidate aspects of their policies. ACE believes that removing the basis clause is a major step towards allaying these concerns and providing clients with a better and more transparent service.

ACE has already removed the clause on certain product lines and on a case-by-case basis on others, where clients or brokers have requested it.

David Robinson, Regional President, UK & Ireland, at ACE said:

"ACE invests a great deal of time in working with brokers to understand clients’ individual needs and we have seen a steady rise in requests for the removal of basis clauses, which we have been happy to accommodate. The next logical step was to stop applying basis of contract clauses for any new or renewing policies going forward. This is an important initiative for us and one that is a direct result of feedback from our customers.”

This does not impact ACE’s marine product line of business, where basis of contracts clauses are generally not used due to the application of the Marine Insurance Act 1906 provisions. These are currently under review by the Law Commission.

ENDS

About ACE:

The ACE Group is one of the world’s largest multiline property and casualty insurers. With operations in 53 countries, ACE provides commercial and personal property and casualty insurance, personal accident and supplemental health insurance, reinsurance and life insurance to a diverse group of clients. ACE Limited, the parent company of the ACE Group, is listed on the New York Stock Exchange (NYSE: ACE) and is a component of the S&P 500 index.

ACE UK & Ireland’s five regions are:

∙ Ireland (Dublin and Belfast) ∙ Scotland (Glasgow, Aberdeen) ∙ The North (Leeds, Manchester, Newcastle) ∙ Midlands (Birmingham) ∙ London and South East (London, Maidstone, Reading, Watford)

Additional information can be found at: www.acegroup.com/uk

ACE Group
Celine Lachevre
Marketing Manager (PR & Events)
020 7173 7489
Celine.lachevre@acegroup.com