Late Payment of Insurance Claim and Potential Technological Solutions


In England and Wales, the Insurance Act 2015 and the Enterprise Act 2016 reformed some of the major legal principles in commercial insurance law, one of which is about late payment of insurance claim. Under the new law, the insurer will be in breach of the implied term if insurance claim is not paid within a reasonable period of time. This article will analyse this new legal doctrine and provide some suggestions on how insurer can deal with the new law. The article will first analyse the wordings of the legislation to establish what are the problems and confusions that may arise under the new law. The article will then analyse court cases to establish what will be the potential applications of the new law. Since there is no definite answer to these potential legal problems, the author suggests to solve the legal problems by modern technologies. Two types of technology will be examined, namely Smart Contract and Artificial Intelligence. This article will then provide some suggestions on how the insurer should deal with the legal problems.

SO Lok Kan