What is the primary goal of the Insurance Act 2015?

The primary goal of the Insurance Act 2015 is to provide consumer protection in insurance agreements. This legislation introduced significant reforms aimed at balancing the rights of policyholders and insurers, enhancing transparency, and ensuring that consumers are treated fairly. The Insurance Act places a strong emphasis on the duty of disclosure, requiring insurers to be clear about the information they require from policyholders, thus helping consumers understand their obligations.

Additionally, the Act introduced provisions that protect consumers when making claims, enhancing their rights and ensuring that they can challenge unfair practices. This focus on consumer rights is crucial in building trust in the insurance system and ensuring that consumers can engage with insurers confidently, knowing that their interests are safeguarded.

In contrast, while standardization, competition, and clarification of liability terms are important aspects of the insurance market, they do not encapsulate the primary objective of the Insurance Act 2015 as effectively as consumer protection does. The essence of the legislation is fundamentally about safeguarding consumers in their dealings with insurers, ensuring they are adequately informed and supported throughout the insurance process.