Insurance Contract Law: Insurable Interest

Main project: Insurance Contract Law

Current project status

  • Initiation: Could include discussing scope and terms of reference with lead Government Department
  • Pre-consultation: Could include approaching interest groups and specialists, producing scoping and issues papers, finalising terms of project
  • Consultation: Likely to include consultation events and paper, making provisional proposals for comment
  • Policy development: Will include analysis of consultation responses. Could include further issues papers and consultation on draft Bill
  • Reported: Usually recommendations for law reform but can be advice to government, scoping report or other recommendations

We last consulted on insurable interest policy issues in 2015, and consulted on draft clauses in 2016. This project is currently on hold due to other priorities within the team, but we aim to publish a revised draft of the bill in due course.

In March 2015, we published an issues paper seeking views on updated proposals. We had consulted on insurable interest twice before: in an Issues Paper in 2008, and as part of our 2011 Consultation Paper: Insurance Contract Law: Post Contract Duties and other Issues.

Our updated and simplified proposals were well supported. A summary of responses is available below.

We then conducted a short consultation exercise on a draft Bill designed to give effect to our proposals. The consultation closed on 20 May 2016.

For interested stakeholders, we also published a paper on parametric insurances, setting out our understanding of the interaction between these products and our insurable interest proposals. We would welcome comments on this.

We hope that the resulting Bill will be suitable for the special parliamentary procedure for uncontroversial Law Commission bills.

Documents and downloads

Project details

Area of law

Commercial and common law


Stephen Lewis