FCA 2023/46: Insurance: Conduct of Business Sourcebook (Employers’ Liability Insurance Amendments) Instrument 2023

The Financial Conduct Authority (FCA) has published a new legal instrument (FCA 2023/46) to transpose the regulatory changes consulted on in the FCA’s quarterly consultation (CP23/18) as regards changes to employers‘ liability insurance rules – please note that a corresponding policy statement has not been published by the FCA at the time this instrument was issued.
Specifically, the new instrument modifies the Insurance Conduct of Business Sourcebook (ICOBS) 8, Annex 1 relating to the Employers’ liability register to no longer require insurance companies to provide the employer reference number (ERN) to the Employer’s Liability Tracing Office (ELTO) in certain circumstances. ELTO is an industry-led office which manages this register in an effort to keep track of employers‘ liability insurance policies to cover potential claims from employees. The register holds information about the employer, the insurance provider, and the coverage provided by a policy. It’s designed to help individuals who want to bring claims against their employers, especially when the employers no longer exist or cannot be located.
So far, liability insurance providers were obliged to always provide the ERN to ELTO. This is no longer the case unless ELTO doesn’t manage to get the ERN within 28 days from the HM Revenue & Customs (HMRC). In this case, the rule change provides that insurance companies are still required to assist ELTO in obtaining the ERN.