The government has given the green light to reforms which will mean insurers, not consumers, have the responsibility to provide all information regarding underwriting risk.
Mark Hoban, financial secretary to the Treasury, said the government has considered the responses to the consultation on the Consumer Insurance bill and decided to take forward the proposed reforms, "when parliamentary time permits".
The reforms are based on recommendations made by the Law Commission and the Scottish Law Commission in their 2009 report Consumer Insurance Law: Pre-Contract Disclosure and Misrepresentation.
The bill will replace the requirement for consumers to volunteer information about everything which a "prudent insurer" would consider relevant, with the requirement that insurers ask particular questions to obtain specific information about the customer.
A statement from the Treasury said current law and regulations on information disclosure were complex, and this bill would provide protection for consumers and reduce costs for industry.
The Bill will be subject to minor modifications to meet concerns raised during the consultation.
This article is taken from COVER's sister title Insurance Age.
