Misrepresentation, Non-Disclosure and Breach ... - Law Commission

Tables & Figures Page
Table 1: Illustrative working of an insurance market with no
misrepresentation 9
Table 2: Illustrative workings of an insurance market with
misrepresentation under scenario 1 10
Table 3: Illustrative workings of an insurance market with
misrepresentation under scenario 2 12
Table 4: Illustrative workings of an insurance market with
misrepresentation under scenario 3 13
Table 5: Illustrative workings of an insurance market with
misrepresentation with different remedies 14
Table 6: Weekly household expenditure on insurance products and
household coverage 17
Table 7: Annualised expenditure on insurance products 19
Table 8: Number of claims, payout and reasons for non payment by
insurance market 21
Table 9: Complaints to the Financial Ombudsman in 2006 23
Table 10: Non disclosure complaints to the Financial Ombudsman
by market size (2005) 25
Table 11: Critical Illness non-disclosure: FOS decisions 26
Table 12: Critical Illness non-disclosure and misrepresentation
cases: classification of outcomes 27
Table 13: Information on products sold and price being the major
determinant of insurance purchase 29
Table 14: List of insurance markets suggested for full cost benefit
analysis and primary reason for inclusion 31
Table 15: Possible economic impact of proposed reforms to nondisclosure
and misrepresentation 33
Table 16: Baseline Assumptions 44
Table 17: Impact of reforms on classification of non-disclosure and
misrepresentation 46
Table 18: Aggregate Static Economic Impact of Proposed Reforms 56
Figure 1: Total annualised expenditure on insurance products 20
Figure 2: Number of complaints to the Financial Ombudsman by
insurance product, 2006 24
London Economics
June 2007 ii