The Association of Insurance and Risk Managers in Industry and Commerce (Airmic) has welcomed the UK Parliament’s unanimous approval of the Insurance Bill.

The legislation is a fundamental reform of commercial insurance regulation, and is now in force.

Airmic CEO John Hurrell says the changes make commercial insurance contract law “up-to-date and fit for the modern world”, benefitting buyers and raising market competitiveness.

The Bill includes provisions on disclosure and the treatment of fraudulent claims, requiring insurers to act with “good faith” and limiting the use of warranties in contracts.

Airmic says previous disclosure rules were “draconian” and allowed insurers to avoid paying apparently legitimate claims. The changes will not take effect until the second half of next year, due to an 18-month transition built into the Bill.