Insurance contract law and regulation and competition in the UK insurance industry: The missing link

With all the events surrounding the setting up of the new Financial Services Authority, the issue of insurance contract law reform has yet again fallen by the wayside. These two matters are however, more closely linked than would first appear. The most recent proposals for the reform of insurance contract law were put forward by the National Consumer Council in 1997 but have fallen on deaf ears. Previously, the wealth and influence of the UK insurance industry lobby has been widely regarded as the primary reason for the failure of past governments to take action to implement recommended changes to the law. The power and motives of the governments themselves should not, however, be underestimated. Furthermore, it is important that the issue does not fall foul of a political dispute and that the law reform debate should take place according to the current and future objectives of society, whatever they may be.