Media Release 17 July 2020
IUA BACKS FORCED LABOUR CLAUSES
Efforts by London Market insurers to combat forced labour and modern slavery have been backed by the International Underwriting Association. The trade body has supported the development of market clauses that aim to eliminate the practice of using workers employed against their will under threat of punishment.
The Joint Cargo Committee, made up of representatives from IUA member companies and Lloyd’s, has published a clause stating that claims payments are conditional on policyholders having undertaken due diligence on legislation relating to prohibited labour. An alternative wording has also been developed by Fidelis, Aon and Marsh, requiring clients to abide by all applicable legal and regulatory obligations on forced and child labour.
Dave Matcham, chief executive of the International Underwriting Association, said: “The use of forced labour is a blight on the global economy and is estimated to affect millions of men women and children.
“IUA members are keen to play their part in tackling this issue and the development of prohibited labour insurance clauses is a welcome move. Whilst their use in individual contracts is, of course, a matter for the negotiating parties involved, they should serve to clearly highlight responsibilities throughout the supply chain.”
Director of Communications
International Underwriting Association
Tel: 0207 617 4449
Mobile: 07876 758 637
Notes to Editors:
About the IUA
The International Underwriting Association of London (IUA) represents international and wholesale insurance and reinsurance companies operating in or through London. It exists to promote and enhance the business environment for its members.
The IUA’s London Company Market Statistics Report shows that overall premium income for the company market in 2018 was £28.437bn. Gross premium written in London totalled £19.559bn while a further £8.877bn was identified as written in other locations but overseen by London operations.